Discontent over the high cost of trading was rife, despite initial concessions by the exchange to reduce fees in September 2016.
The exchange’s strategic plan to boost electronic trade by attracting more financial investors was attracting severe ire from many directions, and incentive schemes to promote the third Wednesday failed to create a subsequent pick-up in volumes.
Several members even formed a breakaway group, nicknamed Project Leadenhall, to evaluate the possibility of setting up their own alternative trading platform.
Fast forward to now, and things couldn’t be more different. The exchange is entering its annual LME Week in 2017 with more reasons to be cheerful than it has had for quite some time.
For starters, the debate over fees has faded significantly, largely due to the further reduction in the cost of short-dated carries that took effect at the start of October.