City's petroleum traders have one last shout

Open outcry trading at London's International Petroleum Exchange (IPE) was silenced for good yesterday when its board of directors closed its oil trading pit and switched to a fully electronic system in an effort to boost efficiency.

Open outcry trading at London's International Petroleum Exchange (IPE) was silenced for good yesterday when its board of directors closed its oil trading pit and switched to a fully electronic system in an effort to boost efficiency.

The pit closure marks the end of a 25-year era of traders dressed in multicoloured jackets battling it out with loud shouts and hand signals.

Last month, the IPE, which is seeking to launch a share issue, closed open outcry because it views electronic trading as the way forward, hailing it as more efficient and better suited to meet client needs. However, critics say the IPE could be making a big mistake, arguing that the human element is crucial to successful oil trading, which is often events-driven.

Many of the traders are expected to relocate to a rival exchange that is being set up in Dublin by IPE's rival, the New York Mercantile Exchange.

Celebrating at a nearby pub, The Mint, near London's Tower Bridge, traders reflected on their time in the IPE pit and contemplated their future plans. Dave Lamont, a trader with Gasoil said: "Plenty of us are prepared to go to Dublin because the more people who go out there, the more chance there is of prime business coming into the market."

Darwin "Charlie" Lam, who trades for Callion, will be relocating to Singapore. He said: "Trading at the IPE was the best job in the world. I started here straight after school and I wouldn't give it up for anything - I'd rather be a plumber than get moved upstairs to a desk. I'll be taking my jacket home with me and framing it."

The switch is unlikely to be without its teething problems. Ironically, on the last day of open outcry trading, two technical glitches froze electronic dealing and delayed trading for more than an hour.