LMEshield issues and manages electronic receipts relating to commodities stored off-warrant. It is available in 30 jurisdictions, including countries new to the LME storage network such as India, South Africa and Chile.
But it is China where the exchange is desperate to make the biggest splash; until this happens, customers are unlikely to flock to the new system.
A warehouse fraud scandal in the Chinese port of Qingdao
rocked the industry in 2014. Hit by the resulting fallout, banks – which had previously financed metal in Chinese warehouses – backed off.
Financing business and metal trading...