Nick Madden, senior vp and chief supply chain officer for US aluminium consumer Novelis, told a US Senate hearing in Washington DC that, despite a more open attitude at the exchange toward implementing change, the LME could not handle everything necessary alone.
He also called for banks and trading companies to be banned from owning warehouses and said that rent should be banned for metal stuck in queues.
Madden said that these recommendations were his “three wishes”, should he be granted a magic wand.
“First, banks and trading companies should not be allowed to own warehouses. Second, we need to clarify the scope of the US Commodity Futures Trading Commission [CFTC] to ensure it covers warehousing,” he said.
“And third, warehouses should be prohibited from charging rents for commodities such as aluminium when they’re in the queue,” he...