LONDON, Jan 19 (Reuters) - The London Metal Exchange has proposed closing Europe's last open outcry trading venue, a source familiar with the matter said.

Closing the ring would end the use of arcane hand signals and frenzied shouting by traders to buy and sell metal.

It was founded in 1877 to serve industrial Britain's insatiable appetite for metals.

From its beginnings above a London hat shop, the exchange became the world's largest non-ferrous metals marketplace.

Hong Kong Exchanges & Clearing Ltd (HKEx) paid an eye-watering $2.2 billion for the LME in 2012, with the aim of extending its global warehousing network to mainland China.

It has yet to achieve that.

Following are some events in the LME's history.

JANUARY 2021

Former HKEx Chief Executive Charles Li, instrumental in the Hong Kong's exchange's purchase of the LME, is made a Honorary member of the exchange.

The Brexit trade deal agreed last month between Britain and the European Union did not cover the financial services sector, which includes the LME.

Whether the exchange can provide access to its systems will depend on the domestic rules applicable in each EU country.

DECEMBER 2020

The LME said it will forge ahead with plans to support sustainable metal production starting with the roll-out by mid-2021 of a digital register to store carbon related details of aluminium.

OCTOBER 2020

The LME is not trying to permanently close its open-outcry ring "by stealth" with its push to boost digital trading during the COVID-19 pandemic, its chief executive told Reuters.

MARCH 2020

The LME temporarily closes it ring - the last open-outcry floor in Europe - on March 23 when the coronavirus lockdown began. This was the first time the ring was closed since World War II when the whole exchange was closed.

NOVEMBER 2019

LME decides to proceed with changes to Queue-Based Rent Capping (QBRC) – from 50 days to 80 days over a nine-month period – designed to allow warehouse companies to compete more effectively for metal.

OCTOBER 2019

The exchange announced its responsible sourcing requirements underpinned by the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance.

MAY 2019

Gay Huey Evans is elected to Chairman of the Board of LME replacing Sir Brian Bender.

JULY 2017

The LME and World Gold Council launch LMEprecious for the trading and central clearing of precious metals products.

APRIL 2017

HKEX and the London Metal Exchange (LME) announce the appointment of Matthew Chamberlain as Chief Executive of the LME

JANUARY 2017

Chief Executive Garry Jones steps down after three years at the helm.

2014

Queues to take aluminium out of storage in Detroit soar to near two years in 2014, sparking complaints from consumers in transport and packaging about artificially high aluminium prices and starting a process to change LME warehousing rules.

NOVEMBER 2014

Goldman Sachs took the lead in rejecting allegations by a U.S. Senate subcommittee that Wall Street banks were exploiting physical commodity markets to manipulate prices and gain unfair trading advantage.

A U.S. Senate report revealed the "imaginative" methods used to lure millions of tonnes of aluminium into Detroit, Metro's headquarters, and then keep it there over the past four years.

MARCH 2014

A court ruling faulted the LME for failing to consult users on alternative ways to reduce vexing logjams in its warehousing network, the backbone of the world's biggest market for copper and aluminium.

JUNE 2012

Hong Kong Exchanges and Clearing Ltd agreed to pay 1.4 billion pounds ($2.2 billion at the time) to buy the LME. The deal was finalised in December.

MAY 2011

Report commissioned by the LME suggests warehouses with large stockpiles be required to deliver out much more metal each day following complaints by consumers of long delays to receive material.

JULY 2010

LME officially launches its Asia office in Singapore. This is the Exchange's first office outside of London and marks a significant milestone for the business.

AUGUST 2006

Martin Abbott appointed as new LME chief executive from October.

END 2005

Copper market in turmoil after Liu Qibing, a trader working on behalf of the Chinese government, vanishes.

JUNE 1996

Sumitomo Corp head trader Yasuo Hamanaka plunges market into crisis after losing $2.6 billion on copper over a 10-year period.

1985

Tin crisis - prices tumble after the World Tin Council's buffer stocks collapse. Contract suspended.

JULY 1914

LME closes because of fear of supply shortages at the outbreak of World War One. Reopens in autumn of same year.

1877

The London Metal Market and Exchange Company established above a hat shop in Lombard Court and trades in tin, copper and pig iron.

Early 19th century

The Royal Exchange becomes so crowded, metal merchants gather at the Jerusalem coffee house on Cornhill to conduct business, where the tradition of the ring and kerb are established.

When a dealer wished to trade he would draw a ring on the floor of the coffee shop and shout "Change".

The expression kerb trade developed when the coffee houses closed at the end of the day forcing traders onto the street to trade on the kerb of the road.

1571

The Royal Exchange, the world's first commodities market, is established. (Compiled by Pratima Desai and Erid Onstad; editing by David Evans)