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The Heavy Metal Battle Between JPMorgan and This Historic Exchange

  • LME is planning new fee charging dealers for OTC contracts
  • JPMorgan is one of the biggest OTC metals traders in London
Traders react on the trading floor of the open outcry pit at the London Metal Exchange Ltd. (LME), in London, U.K., on Monday, April 10, 2017. Iron ore's descent into bear-market territory may herald further weakness, with Barclays Plc pinning the blame for the slide on lower steel demand in China driving a shift from mills toward lower-quality ore and raising the prospect of a drop into the $50s.
Traders react on the trading floor of the open outcry pit at the London Metal Exchange Ltd. (LME), in London, U.K., on Monday, April 10, 2017. Iron ore's descent into bear-market territory may herald further weakness, with Barclays Plc pinning the blame for the slide on lower steel demand in China driving a shift from mills toward lower-quality ore and raising the prospect of a drop into the $50s.Photographer: Simon Dawson/Bloomberg

In its battle to restore its place in the market, the London Metal Exchange is taking aim at one of its largest customers: JPMorgan Chase & Co.

JPMorgan has a leading over-the-counter metals trading operation, where buyers and sellers deal in private contracts outside the exchange. It will be most affected by an LME plan to charge dealers a fee for using exchange prices for OTC trades, according to people familiar with the matter.