But if the reporting of these so-called shadow stocks does not provide this fairness and clarity after a few months, the LME may look to take further steps to incentivize voluntary reporting, he added.
“If you have any link to the metal [and might want to warrant it on the LME], you should report it,” Chamberlain said. “You may only have a 1% chance of needing to warrant it but, if you want that LME insurance, report it [to us]. Everyone buys insurance; this won’t even cost you.”
From February 1 next year, the LME will impose measures to compel the reporting of metal stored under an agreement requiring the use of LME-registered sheds or under an agreement where the owner has a right to warrant metal on the LME in the future.
The LME will provide a...