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LME cuts ring dealing fees in half for August

Published 22/08/2016, 16:28
© Reuters. File photo of men walking past the London Metal Exchange (LME) in London
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LONDON (Reuters) - The London Metal Exchange (LME) has cut fees in half for open outcry trades during August as a goodwill gesture after it had to vacate its premises because of structural problems, it said on Monday.

Ring trading moved to its disaster recovery site in Chelmsford, east of London, in July after a potential safety issue was discovered in the building that houses its offices in London's financial district.

The exchange, the world's oldest and largest market for industrial metals, said in a statement that the combined trading and clearing fees would fall to 25 cents from 50 cents per lot during the month.

The LME, owned by Hong Kong Exchanges and Clearing (HK:0388), said this month that a return to its offices in Finsbury Square (NYSE:SQ) would be delayed further to the end of August, with open outcry trading remaining at Chelmsford until then.

"In light of these unexpected circumstances, and as a goodwill gesture to the members and traders most directly affected by this, the LME is reducing the transaction fee," the statement said.

© Reuters. File photo of men walking past the London Metal Exchange (LME) in London

The reduced fee will be reflected via a credit note and rebate after monthly invoices to members, it added.

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