Commodities
LME Sets New Rule Forcing Traders to Reduce Big Metals Bets
Traders, brokers and clerks on the trading floor of the open outcry pit at the London Metal Exchange.
Photographer: Tom Skipp/BloombergThe London Metal Exchange has imposed a new rule to force traders to reduce large positions, after the market was rocked in recent months by the arrival of some of the world’s biggest energy traders.
Any trader with a position in the nearby month’s contract larger than the total available stock will be forced to reduce the position, the exchange said Friday after the close of LME’s market. The rule comes into force with immediate effect.