LME barred from trading hours extension

The London Metal Exchange has been stopped from extending the hours people can use its e-trading platform, LME Select, after the Office of Fair Trading (OFT) deemed it an anti-competitive move.

The temporary bar follows a complaint from competitor Spectron, which argues that if the London Metal Exchange (LME) extends operating hours it would force Spectron's eMetal electronic trading platform to exit the market.

An LME spokesman told silicon.com: "Obviously it's frustrating and we are disappointed. We've put a lot of work into this and it's something our members want. We'll be working to try to resolve it and will be defending our position."

The OFT said it would be difficult for Spectron to re-enter the market in the future if the LME extends hours beyond its current 12-hour period between 07:00 and 19:00.

It said Spectron is a well-placed competitor to the LME and its exclusion could harm competition for other companies wishing to enter the market.

The OFT is investigating the LME's request to extend trading hours.

In a statement, John Fingleton, OFT CEO, said: "We believe it is necessary to make this interim direction to protect the public interest in maintaining as competitive a market as possible. [U]nless the OFT grants the interim measures direction, it is likely that serious and irreparable damage to Spectron, and especially its reputation, will arise that cannot likely be subsequently remedied."

The OFT said if the LME is found to have abused its position in the market it could face further action within six months.

Spectron declined to comment on the matter.