For the second time in as many weeks, a leading exchange has been hit with technical issues and multi-hour delays, this time affecting the London Metal Exchange’s (LME) electronic platforms in Asia Friday morning, per a Reuters report.
The LME’s technical delay exclusively affected Asian trading, restarting before 0400 GMT, before most European traders woke up. That the delay amounted to four hours of darkness cannot be understated, given that the issue likely impacted the price of certain commodities, namely metals, which suffered from unusually low volumes.
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The nature of the delay had to do with connectivity, as LME members’ could not link into the overall market, prompting a snap reaction to restore order and operations. While burdensome for some Asian traders, the LME’s delay pales in comparison to the technical disturbance at the Singapore Exchange (SGX) last week, which resulted in missed deadlines, lingering uncertainty, and overnight delays that carried into multiple trading sessions.
The LME was quick to point out the cause of the delay, something the SGX had abstained from for several days. Technical delays are relatively common on many exchanges, though vary in terms of frequency, delays, and ultimately impact. Other venues such as the Moscow Exchange (MOEX) has also had issues over the past year, with periodic trading disruptions also drawing the ire of traders.