City Of London
LME Seeks Increased Transparency to Prevent Repeat of Nickel Squeeze
- Bourse proposes rules to force disclosure from OTC dealers
- Squeeze demonstrates effects OTC can have on wider market: LME
Traders at the London Metal Exchange in February.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
The London Metal Exchange plans to force members to regularly report details of their over-the-counter metals positions, substantially expanding its market surveillance capabilities in the wake of this year’s nickel squeeze.
The LME has already imposed emergency limits on daily price moves to prevent a repeat of the 250% spike in nickel prices seen in March, and is now looking to expand its oversight of the bilateral deals agreed between dealers and their clients.