16.09.2015 - London Metal Exchange plans to introduce position limits
The London Metal Exchange (LME) plans to introduce limits on large positions for the first time to avoid market squeezes, initially on its new aluminium premium contract, it said on Tuesday. The use of position limits may be expanded to other contracts if upcoming legislation requires them, the exchange added in a statement. The LME, the world's oldest and largest market for industrial metals, has its own system of controlling the impact of large positions, but that would not be viable for its new aluminium premium contract due to be launched on Nov. 23, it said. Under the LME's existing "Lending Guidance", the holder of a dominant position must sell some short-term contracts at fixed prices to other participants if the latter need them...............................................Full Article: Source
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