Before we get to the fun stuff like with The ring i just want to get your take on The commodity market in general And what you're hearing from your guys Are we are we in a super cycle here or Are we going to have to top out at some Point Yeah so i think we're if we are in a Super cycle It's the foothills of a super cycle You're seeing some Uh pandemic led recovery rebound You're certainly seeing stocks being Drawn down from from our warehouses As you probably expect but i don't think I'm fully yet Sold on there being that multi-year Story Uh which would be necessary for a super Cycle but certainly with the green Revolution With the importance particularly as you Mentioned there of copper You you could see it happening Why do we need a few people in london Shouting at each other To set the price of what is a globally Important commodity that is going to be Pivotal to the electrification trade Yeah so yeah that's a great question and I think Up until march of last year the answer Was Because we weren't certain that we could
Do our metals Pricing uh on the basis of a purely Electronic system You know we do have a pretty complex Market we have all those daily dates And i think if you ask me pre-march 2020 I would have said because i'm genuinely Not convinced that we can do it Now of course the pandemic forced us to Do it And so we stand here now a lot more Confident that we can do electronic Pricing because we've been doing it for The last 14 months and that's why we went out in January of this year And we did propose exactly what you're Discussing there which is Let's stay electronic we've shown we can Do it let's stay electronic But we heard a really uh diverse And balanced set of voices many of whom On the financial side Said yeah we totally agree with that but On the physical side the people who use These prices in their physical supply Contracts Some of them did say to us look we Really Like what the ring brings us and that's Why we've ended up with Something of the compromise yeah uh i've Never been there by the way which needs To be rectified um
Okay what about some of your other Shareholders here stakeholders like Hedge funds banks Tell me about what they thought about This deal yes so we are quite fortunate At the lme That we have two sets of prices we have Our official prices at lunchtime and They're usually made but mainly used by The physical community And our closing prices at 5 p.m and They're mainly used by the financial Community So our friends uh in the investment World who tell us And i believe them that they will put They will do more business on our Exchange If we can modernize if we can become More electronic They in general are quite excited about The fact we're going to keep those Closing prices electronic Because that's what they interact with And they love being able to trade them On the screen Whereas our physical users because They're you mainly using their lunch Time prices They've said to us look lme we're really Grateful that you've kind of gone back To the ring Or you will go back to the ring on the 6th of september because we we like and
Trust what's happened there for 140 Years so I kind of hope that we've managed to get That balance Where where do the firms that use the Ring that participates where does the Lme Make most of its money is it off the Latter or is it off the former And does coming up with this hybrid Solution kind of end up not providing Anybody with kind of what they Ultimately need Yeah i think that that's a that's a Great question and so i think for the End users I think this does give them what they Need uh because they generally fall into The financial or the physical bucket So so their particular prices will be Catered for what they're looking For i think your question really goes to Our cat one dealers our ring dealing Members Who have been such an important part of Maintaining stability in operations During this period And what we have to deliver is a Solution that works for them Now obviously they're going to have to Look at their own business models it's Not for me to speak for them But what i really hope is that they will See an opportunity here
To adapt a little bit their business Models to innovate To maybe have teams who trade on the Ring for most the day And then go into their offices just next To the ring um and uh And try and do the closing prices there Electronically So there is going to have to be some Adaptation but i Really hope that this offers our Category 1 members our ring dealing Members An economic model that works for them Because they are so crucial For how our market works
