By Eric Onstad

LONDON (Reuters) – Societe Generale International will give up its membership of the London Metal Exchange’s open-outcry trading park, the exchange said on Friday, raising questions about the future of the ring.

Over the years, the world’s oldest and largest market for industrial metals has continuously lost members to the Ring, the last open trading venue in Europe.

With the move of SocGen, seven members remain active in the LME ring; at its peak in the late 1980s there were around 30.

The LME ring consists of a circle of padded red leather seats for traders who use mysterious hand signals during five-minute periods of intense trading in gold, aluminum, zinc, lead, nickel and tin.

The official LME prices are set daily on the trading floor and serve as a global reference for metal producers and consumers for their physical delivery contracts.

Societe Generale (OTC:) will cease to be a ring dealing member of the LME from August 27 and will move from Category 1 to Category 2, the LME said in a statement.

Category 2 members may trade on their own account and on behalf of clients through the LME’s electronic system and are members of the LME’s clearing house.

Societe Generale declined to comment. A source close to the bank said there would be no changes to the way it supports its metals customers.

Two years ago, the LME lost ED&F Man Capital Markets as a ring dealing member because it was acquired by fellow member Marex.

The LME decided in 2021 that if the number of Category 1 members fell to fewer than six or their trading in the second ring fell to less than 75% of the previous year’s volume, the ring could be liquidated and official prices switched exclusively to the electronic system.

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

The LME declined further comment.