NEW YORK The
board of the London Metal Exchange has made a decision on its
warehousing rules and "an announcement will be made in due
course," the exchange said following a meeting Oct. 25.
The U.K. regulator
will need to sign off on the decision before it can be formally
announced, people familiar with the matter said.
warehousing rules have been the subject of a three-month
industry-wide consultation on proposals announced at the start
of July (
amm.com, July 1).
Feedback from the
consultation was drawn into a final recommendation document
prepared by the LMEs head of strategy and implementation,
Matt Chamberlain, and discussed at the meeting.
In July, the LME
proposed that in cases where it would take 100 calendar days or
more to clear the backlog of canceled metal in a given
location, warehouse companies would be subject to a calculated
cumulative incremental load-out rate on top of their normal
obligations, until the queue drops below 100 days.
The proposals have divided the market, with aluminum
consumers, producers, warehousing firms and U.S. senators all
offering their opinions.