CFTC review of LME aluminium contracts sought

Three US senators have urged the Commodity Futures Trading Commission (CFTC) to review the London Metal Exchange, citing concerns with ongoing irregularities in the trading of aluminium contracts and warehousing practices.

"We have serious concerns that aluminium contracts’ storage and delivery provisions, as implemented and overseen by the LME, are vulnerable to manipulation and have resulted in an inefficient physical delivery settlement process which raises costs for consumers and erodes confidence in the LME," according to the letter from Senetors Sherrod Brown (Democrat, Ohio), Tammy Baldwin (Democrat, Wisconsin) and Elizabeth Warren (Democrat, Massachusetts).

The senators implored the CFTC to use...

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This article was first published by AMM

September 30, 2014

02:21 GMT

New York