06 AUGUST 2015Seekingalpha.com
Alcoa raises criticism of CFTC over LME warehouse reform
Edited by : AL CIRCLE
1 min read
Alcoa ramps up its criticism of the Commodity Futures Trading Commission (CFTC)'s intervention in the London Metal Exchange's warehousing reform plan, challenging the commodity regulator's handling of the issue for a second time in as many months.
In a letter late last month, Alcoa general counsel Max Laun called on CFTC chairman Timothy Massad to retract the regulator's decision to delay ruling on the LME application to register as a "foreign board of trade" in the U.S. The letter again accused the CFTC of overstepping its authority in attempting to regulate a foreign exchange as it privately pushed for the LME to introduce reforms, including a cap on rents at warehouses.
The move shows rising concerns among aluminum producers about the impact of the LME rule changes on prices, which have plunged near or below breakeven for many global smelters.
In a letter late last month, Alcoa general counsel Max Laun called on CFTC chairman Timothy Massad to retract the regulator's decision to delay ruling on the LME application to register as a "foreign board of trade" in the U.S. The letter again accused the CFTC of overstepping its authority in attempting to regulate a foreign exchange as it privately pushed for the LME to introduce reforms, including a cap on rents at warehouses.
The move shows rising concerns among aluminum producers about the impact of the LME rule changes on prices, which have plunged near or below breakeven for many global smelters.
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