LORD COPPER: I told you so...

The court ruling in favour of Rusal and against the London Metal Exchange over the intended new load-in, load-out warehouse rules seems to have come as something of a surprise to many.

When I wrote here back in January that it was by no means clear that the LME would win the argument, and suggested that it posed a serious problem for the exchange, I came in for a fair number of condescending comments pointing out that “the LME knows what they are doing, it’s not a problem”. Well, there we are.
Aside from a sneaky feeling of vindication on my part, where does the judge’s ruling leave the exchange now?
The first thing to note, of course, is that there may be an appeal, and that appeal may be successful – so the debate is not over yet, although the High Court judge was pretty unequivocal in his ruling. That caveat aside, though, it’s clearly extremely vexatious for the LME.

The problems, real and perceived, of the warehouse system have been like a constant sore for some time now,...


Lord Copper

April 01, 2014

17:50 GMT