Speaking during a press briefing in London on Tuesday October 14, Overlander cited the change in non-ring transaction fees, which, for some participants, could rise about 98% under the new tariff. The LME has said the average increase in transaction fees will be 34%.
“That’s obviously rather a big piece to swallow…non-ring or telephone transactions were, I believe, costing us about 33 cents and that will be going up to 65 cents at the start of 2015,” Overlander said.
It was also suggested that because the structure for carrying out transactions on the LME has become more complex in line with Emir regulations, this could mean even greater fee levels for some companies.
For example, it may be necessary to go through four stages in order to carry out a single transaction with a client, Overlander said, which...