LME rules changes may fuel ‘invisible’ stocks
Jan 15, 2014 | 01:59 PM
| Michael Cowden
FORT LAUDERDALE, Fla. Changes to London Metal Exchange warehouse rules may have the unintended consequence of driving millions of tonnes of aluminum out of exchange-listed sheds and into "invisible" stocks, according to industry observers.
Such a trend means more transparency is needed in the aluminum market, some said, with one analyst calling for reporting requirements in commodities similar to those already in place for equities under U.S. Securities and Exchange Commission (SEC) rules.
"Transparency is critical to price discovery," said Lloyd OCarroll, principal of the OCarroll Aluminum Bulletin. "Wouldnt it be nice if we actually knew who the warrant holders were?"
OCarroll made the comments Jan. 13 during a panel discussion at the Platts Aluminum Symposium in Fort Lauderdale, Fla.....
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