The bombing attacks in London today have caused a variety of disruptions to financial market operations.
Several market players found their operations curtailed by the attacks and the resulting police response. The London Metals Exchange said it would likely be unable to open its trading floor, as it was located within a police exclusion zone. All trading was to be conducted by LME Select — its electronic trading platform — which is unaffected. “The quotations committee will establish official prices, unofficial prices and closing prices for all metals and plastics contracts, at the normal times, in accordance with LME emergency procedures,” it said.
The London Stock Exchange said it has no plans to close the market early, although it has been reviewing the situation throughout the day. Its trading systems have not been affected.
The London Clearing House had to evacuate its office, which was close to the site of one of the bombings, and move operations to its backup site. “As a result of this morning’s serious incidents, LCH.Clearnet has had to vacate its Aldgate office and has successfully switched essential staff and operations to its business recovery site where clearing processes will be run from until further notice,” it said in a statement.
Both the European Central Bank and the Bank of England made their interest rate decisions without trouble today, both leaving rates unchanged. The Governing Council of the ECB decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 2%, 3% and 1% respectively. And the Bank of England’s Monetary Policy Committee today voted to maintain the Bank’s repo rate at 4.75%.
Bombings force some London financial institutions to adjust operations
London Metals Exchange functioning under emergency procedures
- By: James Langton
- July 7, 2005 July 7, 2005
- 10:08