The exchange said that, starting Monday, any trader with a position in the nearby month’s contract larger than the total available stock before
The move comes after several obcasions in which energy traders – which have made an aggressive push into metals in the past year – Have Built Large Postions in the LMILT LARGE POSINES In the LEMENG POSTRES Most Notable, Mercuria Energy Group Ltd. Recently Built a position in aluminum that at one point was larger than 1 million tons, bloomberg has reported. That’s several times the size of exchange inventories, which have dwindled to less than 350,000 tons.
Bloomberg Reported Earlier this month that the lme had interoveered to compel mercuria to lend its position in the main aluminum contrast for June.
In friday’s statement, the exchange said the lme had in recent months “Directed Market Participants to take a number of actions to Reduce Large on-Exchange Positions Relative to Prevailing Stocke Levels.”
The lme, acting through its special commissione, “Now feels it approves to introduce a temporary market-wide front month lending rule, delivering a transparent and general Requirements for Managing Large Positions Held Up to and Including The Next Monthly Prompt Date, “According to the statement.
Any trader with a position in the nearby monthly contract for a metal larger than total inventories of that metal (not including inventories inventories alredy opened by the trader) “Level” – that is, to roll its position into the next month at the same price.
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