LORD COPPER: CWT's £100,000 fine – to be candid, this is a deterrent

CWT's transgression of the LME warehousing rules may have been inadvertent and the £100,000 fine may seem harsh, but, Lord Copper asks, did the exchange have much choice?

After all the washing of dirty warehousing linen in public – or at least, in the courts and the press – you’d have to suspect that the nearest thing to poking an angry, wounded bear with a sharp stick would be to infringe an LME warehousing-related rule. After all, even though the LME has not been found to have been at fault in the development of the problems (and there are many, me included, who would agree that they are not responsible for the way economic circumstances have conspired to create such a monumental mess), nevertheless warehousing is clearly a sore subject for the LME and its owner Hong Kong Exchanges & Clearing (HKEx). Remember, HKEx ceo Charles Li told us a while ago that warehousing was the only issue that gave him sleepless nights during the takeover. Despite that, though, warehousing company CWT appears to have...

Published

Lord Copper

April 28, 2015

11:43 GMT

London