The roles of LME committees
The governance structures of the LME provide for a number of Exchange sub-committees, the majority of which report to the Board of The London Metal Exchange (the Board) either directly or through the Executive Committee (EXCOM). EXCOM is itself a sub-committee that reports to the Board.
The LME User Committee has been established to represent the interests and views of the Exchange's stakeholders. The LME User Committee will report directly to the Board.
The LME Physical Market Committee has been established to represent the interests of the physical metals trade and industry and reports to the LME User Committee.
The function of each of the operational committees (the metals committees, the Trading Committee, the Ring Dealers Committee, the Traded Options Committee and the Warehousing Committee) is to make recommendations in accordance with their terms of reference. The Board has delegated to EXCOM the initial consideration of those recommendations and the power to give effect to a number of those recommendations.
The Arbitration Panel Committee, the Special Committee, the Enforcement Committee and the Quotations Committee are creations of the LME Rules and Regulations. The relevant rules and regulations set out the functions of those committees and identify those powers that the committees exercise on behalf of the Board.
LME Rules and Regulations
The LME Rules and Regulations provide for the Ring Disciplinary Committee to enforce discipline on the premises of the Exchange. In addition, the LME Rules and Regulations provide for a Disciplinary Panel and an Appeal Panel from whom are drawn, respectively, disciplinary committees and appeal committees. These are not sub-committees of the Board. However, Board directors are eligible to be appointed to disciplinary committees (but not appeal committees).
The terms of reference of all the above-mentioned committees are available to download from this section of the site. The terms of reference detail the composition of each committee and the procedures for the appointment of the chairman and other members of each committee.
Full details of the current membership of all committees are available below.