That’s because the LME has been found to be an organ of the UK government unable to be sued for antitrust violations in the US under the Foreign Sovereign Immunities Act.
It’s a huge development for the exchange, which has been seeking up-to-date advice on whether it can influence warehouse charges and not be in violation of competition law.
The wheels were set in motion for the exchange when it was taken to court in December by UC Rusal. Because the Russian aluminium producer sought a judicial review, the LME was viewed as an organ of the UK government.
This in turn played a critical role in helping to define the LME as a UK government body in its motion to be dismissed from the...