Oct. 25 (Bloomberg) -- The board of the London Metal Exchange, which regulates more than 700 warehouses, decided on delivery rules “in principle” after meeting in London.
“The decision has been made in principle and there will be an announcement in due course,” Nat Le Roux, non-executive director, said at the LME today. “I can’t say any more than that.”
Warehouse companies where waits exceed 100 days would have to deliver more metal than they take in under the proposal announced July 1. Industry consultations were completed at the end of September and the new policy will come into effect April 1 if approved. The announcement will contain “the results and details of the consultation,” Miriam Heywood, a spokeswoman for the LME, said in an e-mailed statement today.
The U.K.’s Financial Conduct Authority, which supervises the LME, has a right to object to the rule changes if they’re deemed inconsistent with the bourse’s regulatory obligations, spokeswoman Lara Joseph said by phone Oct. 21.
LME was bought by Hong Kong Exchanges & Clearing Ltd. for $2.2 billion last year.
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