LME says Rusal hedges can be unwound only in ring-fenced accounts

The London Metal Exchange will allow open positions with Russian aluminium producer Rusal to remain open until June 5 and hedges to be unwound as long as payments are made into segregated accounts, it said in a notice to its members on Monday April 16.

Some LME members holding hedging or clearing contracts with UC Rusal have been worried about having to immediately unwind positions since the United States Treasury imposed sanctions on April 6 against the Russian aluminium producer. "Contrary to certain suggestions in the market, the LME is not requiring prima facie that such relevant contracts must be immediately closed out," it said in the notice. LME members may wish to close out Rusal's positions on the same price at which they were entered into - i.e. with no realization...

Published

Perrine Faye

April 16, 2018

17:09 GMT

London