Financial Regulatory Forum

ANALYSIS-Spotlight on Chinese walls in LME warehouses

By Pratima Desai

LONDON, Aug 13 (Reuters) – Fears of sensitive information seeping through Chinese walls has resurfaced after the recent purchase of London Metal Exchange registered warehouses by a major trader, but that concern is not universal.

Motives for buying warehouses include diversifying revenue streams. Lucrative financing deals that tie metal up for long periods and the potential launch of physically-backed exchange traded products (ETPs) also require long-term storage.


LME’s freight derivatives bid set to falter

   By Jonathan Saul and Rebekah Curtis
   LONDON, Dec 9 (Reuters) – Opposition from ship brokers and a lack of experience in the seaborne sector is set to scupper any bid by the London Metal Exchange (LME) to move into the freight derivatives market. (more…)

COLUMN-Tin squeeze tests regulator’s mettle in U.K.: John Kemp

– John Kemp is a Reuters columnist. The views expressed are his own –

By John Kemp
LONDON, Oct 5 (Reuters) – The year-long squeeze in the London Metal Exchange’s tin contract has renewed intense criticism about the ineffectiveness of commodity regulation in London. It comes at an awkward time, just as the UK authorities try to resist pressure from the United States to introduce stricter market oversight and tougher position limits.

The squeeze has focused attention on contrasting approaches to market regulation. U.S. regulators have long relied on position limits to ensure markets cannot be cornered by a single participant and prices reflect a diversity of views. (more…)

EU joins U.S. call for more oil market transparency

By Jan Strupczewski and Pete Harrison
BRUSSELS, Sept 16 (Reuters) – The European Union has joined the United States in calling for action to improve transparency in oil markets, a draft EU document shows. (more…)

UK, oil groups to meet on U.S. regulation pressure

Fuel tanker in Britain (file) By Christopher Johnson
LONDON, Aug 4 (Reuters) – Britain’s financial watchdog and the UK Treasury will meet oil industry representatives on Wednesday in response to U.S. pressure for more regulation of commodities markets. (more…)

LME, ICE say no plans to detail non-commercial positions

By Pratima Desai
LONDON, July 29 (Reuters) – The London Metal Exchange and Intercontinental Exchange said on Wednesday they had no plans to publish details on speculative positions on their contracts, despite controversy about some recent holdings at LME.