The International Petroleum Exchange (IPE) will cut back on open outcry dealings in Brent oil futures, which from November 1 will trade only on an electronic platform until 2 p.m., the exchange said on Thursday.
The IPE, Europe's biggest energy bourse, said in a statement that pit trade would start at 2 p.m. London time, instead of at 10 a.m. at present.
This effectively cuts open outcry hours by almost half, but would more or less coincide with pit timings on the New York Mercantile Exchange (NYMEX).
The exchange said Brent would trade only electronically between 10 a.m. to 2 p.m. Both systems will run parallel from 2 p.m. onwards until closure at 7.30 p.m., it added.
The IPE said the move was in response to demand from global energy players and the November 1 timing would give players enough time to prepare for the change.
"This follows the pattern of rapid growth in screen trading across commodity and financial markets," IPE Chairman Bob Reid said. "The commercial environment has been designed to encourage participation and grow liquidity quickly."
The exchange, which was taken over by the US-based Intercontinental Exchange (ICE) in 2001, currently uses electronic trade in parallel with pit trade but the system has struggled to get off the ground.
Many London-based traders, especially so-called locals who trade on their own account, have been upset by plans to extend electronic hours, saying it will reduce liquidity on the exchange.
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