CFTC to meet with Alcoa on LME warehouse reform

The dispute highlights aluminium producers' concerns about the impact of LME rule changes on sinking prices. Recent LME reforms have increased the rate at which metal must be delivered out of warehouses, a response to controversial financing deals, and aluminium has flooded the market partly as a result. In a letter late last month, Alcoa general counsel Max Laun asked the CFTC to retract a letter announcing its decision to delay ruling on the LME's application to register as a "foreign board of trade" in the United States.
The letter accused the CFTC of overstepping by attempting to regulate a foreign exchange while pushing for the LME, the world's oldest and biggest market for industrial metals owned by Hong Kong Exchanges and Clearing Ltd to introduce other reforms, including a cap on warehouse rents. Laun also requested a meeting between Massad Oplinger for the week of Monday, August 24.
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