(Bloomberg) — Societe Generale SA is withdrawing from the public trading floor of the London Metal Exchange, a move that raises new questions about the viability of the legendary “ring” as a central pricing system in global metals markets.

The bank will continue to serve its clients as a clearing member of the exchange, but will withdraw from the trading floor from August 27, the LME said in a statement to members. This leaves only seven members on the trading floor, after other traders such as Triland and ED&F Man had already resigned in recent years.

The LME was forced to close the ring during the Covid-19 pandemic and decided to do so permanently after a successful transition to fully electronic pricing. It was eventually reopened in a reduced capacity following an outcry from members, but trading volumes have fallen sharply since reopening.

The LME has announced that it will consider permanently closing the trading floor if there are fewer than six members and the remaining members account for less than 75 percent of previous trading volumes.

“The LME confirms that none of the criteria for a ring price liquidity event have been met as a result of this announcement,” the statement said.

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