HOTTER ON METALS: No such thing as a free LME warehouse lunch

There’s no such thing as a free lunch, as the London Metal Exchange intends to show.

Ahead of introducing new warehouse rules, the LME is now planning a short two-week consultation on proposals to tighten up abuse provisions and prevent warrant holders taking advantage of regulations to get free rent. The gist of their concern is fairly simple: if warrant holders know their rent charges will halve after 30 days of metal sitting in a queue and vanish after 50 days, some market participants might try to deliberately create long lines to load out metal. So the LME is now proposing to stagger the dates at which...

Published

Andrea Hotter

September 30, 2015

16:25 GMT

New York