LME warehouse investigation steps up a gear

摘要

The LME has set up a Physical Market Committee and announced a logistical review of its warehousing system. In addition, legislation has enhanced the bourse's ability to investigate parties that artificially created and maintained queues. Pacorini has de-listed 14 LME warehouses in Vlissingen. The move signals an increasing risk that LME aluminium inventories will move to unreported stocks in the coming year. The LME announced a logistical review of its warehousing system in early February. In addition, the exchange has set up a Physical Market Committee. One interesting development is that the LME has included a new clause in its LME Warehouse Agreement which gives it enhanced powers to impose additional load-out obligations on warehouses that have paid incentives to artificially create or maintain queues.