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Stripey-blazered oil traders in good voice.

Dealing on the London oil market was in full cry again yesterday after traders best known for their stripey blazers and frenzied hand signals scored a victory over the advance of technology.

The launch of an open outcry trading pit by the New York Mercantile Exchange (Nymex) in the City of London marks a rapid return for the floor traders, many of whom feared the activity had been lost following the closure of the International Petroleum Exchange's pit in April.

At the same time that the IPE opted to go electronic, Nymex announced it would open a floor to add to the London Metal Exchange, which was in danger of being the only commodities pit or ring left in London.

Nymex, which has room for about 100 traders, said it believed the system was the "most fair and transparent" and that it had also been a move requested by customers.

Under the open outcry system, orders are taken over the telephone by brokers and transmitted to traders in the relevant pit. All orders must be shouted out with hand signals used to supplement the words.

Many of the open outcry traders at the London IPE switched to Nymex after it launched an open outcry pit in Dublin in November. They have now moved to London to deal in the Brent crude futures market


The trading floor at Nymex in the City of London yesterday
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Sep 13, 2005
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