The change of schedules is effective since yesterday

The main market in the world of base metals, the London Metal Exchange (LME), intends to significantly increase the number of its stakeholders. At the extraordinary general meeting on May 29, shareholders overwhelmingly approved a special resolution that the right to bargain on the LME is not an exclusive faculty members recognized shareholders of the market. The financial services firm creates a second class of shareholders, holders of shares of type "B", which will find themselves side by side with the traditional owners of securities of type "A" members.

Certificates of these new shares were already sent to the current shareholders to the tune of a new "B" action available for ten "A" shares. They rétrocéderont them to applicants at a free price fixed by the two parties. The "B" shares will enable their future owners to deal with the contracts listed by place London auction and its LME Select electronic platform, launched in February 2001 and last updated in December 2003. However, they will not have the right to vote at general meetings and no dividends will be allocated as lacking the quality of full members of the fellowship.

Change of schedules

"It is a forward crucial," commented Donald h. Brydon, Chairman of the LME. But in what direction The objective is to significantly increase the liquidity of 129 years old market (more than 4,500 billion dollars in 2005). At the time of the proliferation of commodity futures contracts, its supremacy could be challenged by the rise of the new East places such term. To this end, the LME has developed an articulated strategy based on alliances and a better accessibility to its products.

October 25, 2005, the London market has sealed an agreement with the stock exchange Indian electronic Multi Commodity Exchange (MCX) so that it uses the reference prices of base metals quoted in London for his own contracts. On the other hand, the LME is reached at the end of a long battle against its small national competitor Spectron Group, to the approval of the British competition authority to open its electronic system for 1 hour in the morning (local time) at 1900 hours, six hours more than previously. The change of schedules is effective since yesterday. So, "LME Select can now be accessible from the United Kingdom and the United States, but also, after obtaining the necessary green lights of different regulators, Singapore, the Japan and China." "The LME is currently for similar amenities in Hong Kong and Australia," says the business market.

By having the function as soon as one hour of the morning in London, 8 hours in Shanghai, LME Select opens its doors with one hour in advance on its local competitor, the Shanghai Futures Exchange (SHFE). It has approximately 219 members, including 183 brokerage firms. End of may, the SHFE signed a strategic cooperation agreement with the powerful Tokyo Commodity Exchange (TOCOM), by far the more seasoned rival of the LME in Asia. A longer term, it is not excluded that the London-based company, dé-mutualisée since September 14, 2000, decides to introduce in the stock market to participate in full title to the movement of ongoing consolidation in the sector. But on this thorny subject, instructed the LME is to keep the sewn mouth.