HOTTER ON METALS: Court ruling on LME inevitable

The dismissal of the London Metal Exchange from an antitrust lawsuit on the grounds that it is an organ of the UK government seems to have taken a few people by surprise.

But it could be argued that the ruling in favour of the LME, made by a US judge in a Manhattan court this week, became an inevitability in December last year. That is when UC Rusal announced it was taking legal action against the exchange over its planned changes to its warehousing rules, on the grounds that the consultation process was flawed and didn’t include a risk or cost benefit analysis. Rusal sought, and was granted, a judicial review. That means the UK has been treating the LME as if it were a UK government agency whose decisions are subject to judicial review. If that’s how the UK sees it, then it makes arguing against that view pretty tricky. Not such a surprise after all, then. Sovereign agency If the...


Andrea Hotter

August 28, 2014

06:13 GMT

New York