How arbitration works

LME arbitration, being commercial, is designed, not for mediation or conciliation, but to result in outright settlement. The parties will have agreed that an independent decision on their dispute will be made by a third party, in the form of one, two, or even three arbitrators under the LME arbitration rules. The LME's arbitration service is generally recognised as the best available to the metals world. Indeed, so well regarded is the LME's arbitration facility that the service is used by a growing number of enterprises who have no direct involvement in metals.

The arbitration rules have been drawn under the framework of English law. Thus any awards are enforceable by the High Court and there is the possibility of appeals on points of law to that Court, although the parties may exclude such appeals by agreement after the arbitration has commenced. Awards are also enforceable in most overseas countries under the New York Convention of 1958, for the Recognition and Enforcement of Foreign Arbitral Awards.

Selection of the arbitration panel

Members of the LME arbitration panel are carefully selected and are required to demonstrate a wealth of experience within the metals trade. Panelists need not be members of the LME, or even associated with the Exchange, but they are only admitted to the panel if they can show a broad knowledge based on the practical experience of trading in metals. A legal or arbitration background is now an added requirement but is not the sole requirement.

The arbitrators, whether appointed by parties to a dispute or by the company, remain totally impartial and do not represent any party or act as advocates.

LME Rules and Regulations

To purchase a copy of the London Metal Exchange Rules and Regulations, contact +44 (0) 20 7264 5555.

Notes

1. The amount of the Registration Fee (referred to in the Arbitration Regulations) is £2,300 (including VAT).
2. The amount of the Deposit (referred to in the Arbitration Regulations) is £2,500 (no VAT payable).
3. Cheques should be made payable to "The London Metal Exchange Limited".
4. All queries regarding LME arbitration are to be addressed to the Arbitration Secretary, Alex Morley (alex.morley@lme.com), or Tom Hine (tom.hine@lme.com) at The London Metal Exchange Limited.