World’s Oldest Metal Exchange Set to Rethink Its Strategy

July 19, 2017
by Mark Burton and Jack Farchy

  • Measures follow two months of discussion with exchange’s users
  • Board members to vote on proposed changes at meeting on Aug. 2

The London Metal Exchange is likely to adopt measures including a cut in fees and a charge for over-the-counter trades to try to quell a rebellion over costs and reverse a decline in its market share, according to two people familiar with the plans.

The changes mark a shift toward a more conciliatory tone since Matthew Chamberlain took over as chief executive officer in April after years of confrontation with customers over rising fees and efforts to promote electronic trading.

The proposals include a cut to fees on so-called short-dated carries — which users trade to roll expiring contracts forward in the near term — and a charge on dealers issuing OTC contracts that settle against LME prices, according to the people, who asked not to be identified as the information is private…

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