The discussion paper on Tuesday January 19 caught people’s attention because of its proposal to close the open-outcry trading ring
, but participants told Fastmarkets other topics are far more controversial.
“It did seem like at first this section got overshadowed by the talk of the ring, but now people have read it – there is a lot of interest in these rules and mixed reactions,” a market source said.
In the last section of the discussion paper the LME said it recognizes that knowledge of metals stocks and physical movements may advantage certain traders with better access to information on them.
In response to this, the exchange is considering the impact and whether relevant options for increasing transparency would be of benefit to the market.
In February 2020, the LME did introduce off-warrant stock reporting - but it is on a one-month delay so does not provide a contemporaneous picture....