LME consults on QBRC anti-abuse mechanism

The London Metal Exchange (LME) is consulting on the inclusion of an anti-abuse mechanism to govern the application of its proposed queue-based rent capping (QBRC) rules, it said on Wednesday September 30.

The proposal comes in the light of “significant concerns” that metal owners could abuse a queue-based rent cap by cancelling large volumes of metal in order to increase load-out queues and take advantage of free or discounted rent.
The concern, raised during a six-week consultation announced in July, requires a “specific anti-abuse provision”, Matthew Chamberlain, head of business development at the LME, said.

The LME has proposed an anti-abuse mechanism that would stagger the dates at...

Published

Charlotte Radford

September 30, 2015

16:31 GMT

London