US House judiciary chairman rips CFTC, LME

US House Judiciary Committee chairman Rep. Bob Goodlatte (R., Va.) ripped the US Commodity Futures Trading Commission (CFTC) and the London Metal Exchange for what he said was a "slow" response to long waits for aluminum at exchange-listed warehouses.

End-users are concerned that "restrictive policies" by the LME, its trading members and exchange-listed warehouses have put the supply of aluminium "in jeopardy," Goodlatte said, noting that customers wait more than 600 days for aluminium at some locations, paying rent on the metal the entire time.
"I am greatly concerned that these warehousing practices may be driving up the price of aluminium," Goodlatte said during a House Agriculture Committee hearing on April 9 on a bill to reauthorize the CFTC.

The CFTC is responsible for preventing illegal price manipulation and unfair trading, but Goodlatte questioned the agency’s resolve in the case of long aluminium queues. "The...

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This article was first published by AMM

April 11, 2014

05:29 GMT

Chicago