LME WEEK: Death, taxes and warehousing: Abbott keen to limit impact of queues

The debate surrounding London Metal Exchange warehousing has become as constant as death and taxation, ceo Martin Abbott told guests at the exchange’s annual dinner on Tuesday October 16.

“It is said that the two certainties in life are death and taxation, but for the LME there is a third certainty. If you open any specialist media on a slow news day you will find an article about warehousing,” he said. His comments came a day after Charles Li, ceo of Hong Kong Exchanges and Clearing, spoke publicly on warehousing for the first time, describing it as the one issue that might have prompted the Asian bourse to drop its bid for the LME. Abbott has previously stressed that Federal Reserve chairman Ben Bernanke is the only person with the power to bring an end to the aluminium financing arrangements that have encouraged large warrant cancellations in locations such as Detroit. But with large queues now disrupting withdrawals from other locations...


Mark Burton

October 16, 2012

21:30 GMT