LME tightens warehouse third-party agreements after WWS landlords exercised right to retain metal

The London Metal Exchange has undertaken a review of its warehousing network and tightened up rules surrounding third-party landlords following the delisting of warehousing company Worldwide Warehouse Solutions (WWS).

The LME will now require warehouse companies to check all agreements with third parties, such as landlords and service providers, to ensure that its agreements do not contain any such rights of retention or lien – the right to keep possession of property until a debt is discharged – over LME metal, it said in a notice to members on Wednesday August 8.
The rule comes following a review of the delisting of WWS on June 21, when the LME learnt that landlord warehouse companies of WWS had refused to release LME-warranted metal because of debts owed to them.
LME said it had been aware of potential concerns around the financial stability of WWS throughout June 2018 and closely monitored the situation.

But “on the basis of this information, [that certain WWS warehouse landlords were holding metals]...


Alice Mason

August 08, 2018

13:18 GMT