Garry Jones said that when the LME set out to discuss with members what their biggest key issues or concerns might be, “the argument was consistently made that the very short-date carries mattered most”.
“This was said to us by a lot of people as something they would like to see change. People accept that the fees cut isn’t going to turn volumes around on a sixpence, but nevertheless it shows we’re listening and going in the right direction,” he added.
Critical to not just the members but also to their industrial clients who roll positions daily, activity in the short-dated carries and particularly tom-next has fallen away dramatically over the past 18 months. Many have blamed the increase in LME fees at the start of 2015 for the decline in activity, and called for the exchange to reduce the cost of trading.
Last week, the LME reduced the fee...