On December 15 local time, the London Metal Exchange (LME) announced plans to introduce new position limit rules effective from July of next year, in compliance with requirements set by UK financial regulators. According to the statement, the new framework will enhance the LME’s ability to directly adjust and manage position limits, ensuring appropriate thresholds are maintained and enabling timely responses to market developments.
The new rules will apply to key contracts, including the exchange’s core futures products for aluminum, copper, lead, nickel, tin, and zinc, as well as related options and cleared trade contracts. Key changes include calculating positions on a net basis at both the individual entity and group levels, and replacing the existing accountability levels with new accountability thresholds to give the LME a more comprehensive view of market participants’ risk exposures.
