LME Will Hold User-Fee Briefing for Members in Two Weeks
The London Metal Exchange, the world’s biggest marketplace for industrial metals, will hold a meeting in two weeks to brief members on a plan to raise trading fees.
The meeting will take place at 8 a.m. London time on Feb. 7 at the America Square Conference Centre, according to a copy of the invitation seen by Bloomberg. The LME, where investors buy and sell metals from aluminum to zinc, advised members last month that fees would climb 67 percent as of March 1.
Three of the exchange’s directors wrote to members to oppose the plan, a person familiar with the letter said Jan. 11. A majority of the board backed the decision and there are no plans for any changes, Martin Abbott, the LME’s chief executive officer, said the next day. The exchange wants to increase fees to help boost revenue.
“We have received representations from a number of member companies, and we think it would be useful to hold a briefing session in order that the rationale for the new fee can be explained in more detail than was possible in the official LME fees notice,” Abbott and exchange Chairman Brian Bender said in the invitation. The briefing will contain proprietary information, it showed.
James Land, managing director of Amalgamated Metal Trading Ltd., wrote to members to oppose the plan, the person said. He was joined by Gavin Prentice, managing director of Marex Spectron Group Ltd., and Michael Overlander, chief executive officer of Sucden Financial Ltd., according to the person.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
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