LME revisits old ideas to get some OTC volume back – sources

The London Metal Exchange’s discussion paper to be released early in May includes a proposal for an over-the-counter (OTC) metals platform that could bring some volumes back to the exchange and stop competitors from taking even more business, sources told Metal Bulletin on Thursday April 20.

The OTC platform is not a new idea but it has become a more attractive one now that LME volumes are falling, new regulations are pushing transactions towards clearers and a rival exchange backed by former LME ceo Martin Abbott is in the making. “The LME has been talking about launching an OTC platform for years – it’s an old idea coming back to protect [the exchange itself] from a new platform,” a source at a member firm said. “They have looked at this before and passed off. Now they are going back into the bottom of their drawer to solve issues,” another...

Published

Perrine Faye

Alice Mason

April 20, 2017

16:32 GMT

London