HOTTER ON METALS: Are cash-settled contract fears unfounded?

Is the London Metal Exchange moving ever closer to cash-settled contracts?

It’s a question that the London Metal Exchange’s latest warehousing proposals has raised among market participants. The LME and its owner, Hong Kong Exchanges & Clearing (HKEx), have come under fire in recent months for changes they have made or propose to make at the 138-year old metals exchange. Concern that higher exchange fees would hit liquidity and volumes, and drive business to over-the-counter markets, have been a hot topic of debate. Metdist Group md Apurv Bagri publicly warned the LME’s owner to protect the exchange’s unique structure during a speech at the annual LME Week dinner in October. LME data shows that copper volumes to the end of May have declined each month since the start of the year, while aluminium...


Andrea Hotter

July 02, 2015

01:50 GMT

New York