Fees are going to rise, and the big question is by how much.
It isn’t as if the market hadn’t expected fees to jump from next year; Hong Kong Exchanges & Clearing, the owner of the LME, has always said it wouldn’t meddle with fees until 2015.
But with the end of this reprieve looming, HKEx is now looking to recoup some of the eye-watering £1.38 billion ($2.2 billion) it paid for the metals exchange back in 2012.
There have been other costs, to be fair. Building a clearing house from scratch is not cheap, and – once up and running – it’ll provide the metals market with a bespoke venue.
LME Clear will make money for the exchange, just not yet.
A fresh revenue stream...