The London Metal Exchange will introduce new levels for the minimum amount of nickel and tin that warehouses must deliver every day.
The new policy starts on April 1, 2013, the bourse said in an e-mailed statement today following a consultation period with warehouse companies. The exchange will convene its committee reviewing delivery rates across all warehouses, it said in a separate notice.
The LME board in April accepted in principle a proposal to require warehouses to deliver at least 60 metric tons of tin or nickel, or a combination of both each day. The exchange proposed the rules amid concerns that long wait times may limit the availability of the metals.
The LME, which has more than 700 storage points, revised its delivery rules in April, doubling load-out rates to 3,000 tons for warehouse companies storing more than 900,000 tons at a single location. The new minimum delivery rules for nickel and tin will only apply if a warehouse company doesn’t deliver 60 tons of the metals as part of standard deliveries, the LME said in a notice to members in April.
The committee, including Chief Executive Officer Martin Abbott, Deputy CEO and Director of Compliance and Regulation Diarmuid O’Hegarty and Head of Physical Operations Robert Hall, is convening before a six-month review of the delivery rates.