LME aims to boost warehouse 'elasticity'

The London Metal Exchange is looking to boost the "elasticity" of its warehouses, mindful that a rise in US interest rates will likely boost demand for stored metal.

The LME has proposed changes to load-in/load-out (Lilo) rules that would increase the decay factor of metal stocks, a parameter that affects the rate at which queues are reduced, to 1 times from 0.5 times effective August 1. The doubling in the rate at which metal can leave the exchange’s warehouses is aimed at lessening the impact of structural queues. The measure should help the warehousing network cope with a sudden rise in demand, LME head of business development Matthew Chamberlain told...

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This article was first published by AMM

March 05, 2015

00:03 GMT

New York