ISRI members 'adamantly oppose' LME margin change

Proposed changes to the London Metal Exchange’s margin methodology would have detrimental implications for collateral and credit lines, increase transaction costs and brokerage fees, and inhibit scrap recyclers’ ability to hedge, according to the non-ferrous division of the Institute of Scrap Recycling Industries (ISRI).

A number of members had expressed “adamant opposition” to any changes that would affect the ability of LME member dealers to extend credit lines, ISRI non-ferrous division chair Christine Gneiding said in a letter to the LME.
She was responding to an exchange discussion paper that closed to responses on Friday March 19.
“The effect of the credit issue is potentially very large for ISRI members in aggregate,” she added.

ISRI represents around 1,300 member companies worldwide that process,...

Published

Andrea Hotter

March 19, 2021

20:30 GMT

New York