The London Metal Exchange's board of directors has made a decision "in principle" regarding warehouse delivery rules. "The decision has been made in principle and there will be an announcement in due course. I can't say any more than that," said Nat Le Roux, nonexecutive director of the LME. The LME's proposal would require warehouses with waits longer than 100 days to deliver more metal than they receive.
Garry Jones, the new CEO of the London Metal Exchange, on Monday deflected industry criticism of the exchange's commitment to transparency and its deliveries from its warehouses. "We are an exchange," Jones said. "We are not a player in the market. We are a transparent, central market place and that's very important to us."
The London Metal Exchange and Goldman Sachs are the defendants in a lawsuit filed by aluminum end user Superior Extrusion relating to aluminum warehouse policies, according to LME's parent company, Hong Kong Exchanges and Clearing. "We believe this suit is without merit and we intend to vigorously contest it," a Goldman Sachs spokesman said.