HOTTER ON METALS: Alcoa calls for answers from the CFTC

It’s not that often that the actions of a regulator are called into question, but that’s exactly what has happened in the commodity markets this week.

The Commodity Futures Trading Commission (CFTC) has been asked to provide Alcoa with documents related to the London Metal Exchange’s warehousing rule changes and other reforms. Alcoa’s aim is to find out how much influence the regulator had over those reforms, some of which have been introduced, some of which have not. What set Alcoa along this path was a letter sent by the CFTC to the LME back in March, informing the exchange that its application for foreign board of trade status in the US had been deferred. Getting a foreign board of trade licence is critical for the LME, as this allows US market participants to continue to access...


Andrea Hotter

June 09, 2015

17:30 GMT

New York