RUSAL v LME: Claim exchange policy decision was to prevent reputation harm ‘wholly absurd’

Rusal’s claim that the London Metal Exchange’s decision to implement a policy aimed at shortening warehouse queues was made because inaction would harm its reputation is “wholly absurd”, the UK High Court was told on Thursday February 27.

On the second day of hearings on Rusal’s claims that the exchange’s consultation on the policy was unfair and should be redone, Michael Beloff, QC, acting on behalf of the LME, told the court that the exchange was acting in its duty to ensure business in its markets is conducted in an orderly fashion. Moreover, the exchange acted reasonably by not including every possible solution to the problem of long warehouse queues in its consultation and this did not imply it was going into the consultation with a closed mind, the court heard. Beloff added that it was well known to the market that the LME receives 1.1% of the daily rent paid to warehouses with LME warrants, meaning there was no need overtly to draw attention...

Published

Claire Hack

February 28, 2014

07:21 GMT

London