CFTC eyes warehousing after LME foreign board of trade application

The London Metal Exchange has applied to be a foreign board of trade in the US, a move that has led to increased scrutiny by the US regulator of its warehousing system.

Vincent McGonagle, director in the market oversight division of the US Commodity Futures Trading Commission (CFTC), said that the LME’s application had led the regulator to evaluate whether the long queues to access metal in LME-approved warehouses were the cause of high premiums for physical delivery. “The issue requires some degree of evaluation by the CFTC as it relates to...

Published

Andrea Hotter

January 15, 2014

21:04 GMT

New York