In March 2023, the London Metal Exchange and LME Clear published a two-year action plan to enhance and strengthen their markets.
The action plan addresses recommendations put forward in the Oliver Wyman report, following events in the nickel market in 2022, and aims to:
- Embed the findings of independent, internal, and regulatory-led reviews to manage risk through enhanced controls.
- Enable the market to provide deep and resilient liquidity for LME participants and members.
- Build confidence in the reliable and transparent operation and governance of the LME Group’s markets.
- Evolve market structure, demonstrating the Group’s ability to deliver modernisation and change.
Action plan latest
14 December 2023 - LME consults on proposals in respect of daily price limits and rulebook changes
We are seeking views on proposals designed to enhance our daily price limit framework and a number of other rulebook proposals.
09 November 2023 - Off-warrant stock report enhancements and low-stock measures update
We are enhancing the scope of off-warrant stock reporting to include all eligible metal stored in LME-registered sheds. The new simplified reporting requirements, part of the action plan to strengthen our markets, are designed to provide greater visibility and will come into effect from February 2024. We are also making existing low-stock measures permanent from 11 December 2023.
14 September 2023 - Decision notice on proposals relating to the Closing Price methodology
Following a market-wide consultation, we will introduce a phased roll-out of an evolved Closing Price methodology to our most liquid contracts, designed to bring more determinism, transparency and standardisation to the Closing Price discovery process.
29 August 2023 - Minimum level of the default fund
Following the completion of its governance approval process, including non-objection from the Bank of England, LME Clear will be introducing a new methodology for setting the minimum default fund size as part of the action plan to strengthen and enhance its markets.
17 August 2023 - Update on consideration of nickel powder as a deliverable shape
Market participants were broadly supportive of the introduction of coarse nickel powder; however, feedback also highlighted challenges around the acceptability of coarse nickel powder packaging solutions.
5 July 2023 - Changes to daily price limits
We have introduced of a new calibration methodology for the daily upper and lower price limits for base metals.
31 May 2023 - LME consults on proposals to enhance LME Closing Prices
We have launched a market consultation on enhancing the transparency and determinism of LME Closing Price discovery.
31 May 2023 - LME consults on off-warrant stock reporting and low-stock environments
We have launched a market consultation on proposals designed to bring greater visibility of unwarranted metal stocks and make permanent existing controls around the management of low stock environments.
For further information please get in touch.