Debate heats up as LME board faces big decision on SGX minis

Oct 06, 2010 | 11:38 AM |

The London Metal Exchange's board on Friday will consider the possible launch of LME mini-contracts through the Singapore Exchange (SGX) in the first quarter of next year, sparking increased debate in the runup to LME Week starting Oct. 11.

There is a growing realization among member companies that the proposal to trade LME minis in copper, zinc, nickel and aluminum through the SGX is potentially momentous in that it could change the trading methodology of the exchange.

Whether the LME's board will actually vote on a plan Friday remains to be seen.

"I very much doubt a decision is going to be made on the issue this week. There isn't a motion to the board—it's a footnote, something that I think the board will discuss; there's not actually even a proposal yet," a trading source in London said.....

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