Banks, trading houses ordered to preserve documents ahead of possible warehousing probe

The US Commodity Futures Trading Commission (CFTC) has sent a letter to banks and trading companies ordering them to preserve documents ahead of a possible investigation into warehousing activities, sources said.

The ownership of London Metal Exchange-listed warehouse companies by banks such as Goldman Sachs and JP Morgan, as well as large trading houses like Glencore, has drawn criticism from physical market participants after large incentives offered to suppliers to move metal into warehouses sent physical premiums to record highs over the last year.

European duty-paid aluminium premiums peaked at $290-305 per tonne in January, while the waiting times for deliveries...

Published

Jethro Wookey

July 22, 2013

12:36 GMT

London