LME to hike fees eight per cent next year
The London Metal Exchange (LME) is set to hike its trading and clearing fees for the first time in five years in 2020.
The historic exchange has said it will raise fees by eight per cent at the start of next year, as its owner, Hong Kong Exchanges and Clearing (HKEX), looks to regain some of its investment.
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“Since our fee recalibration exercise in 2017, where we implemented significant discounts, we have begun to invest in a number of key areas of the business, which – along with inflationary impact – has led, in our view, to a fair and proportionate new fee schedule,” said Matthew Chamberlain, LME chief executive.
He added: “We are announcing the schedule two months in advance of its implementation in order to give members and clients timely visibility of the changes.”
HKEX, which gave up its takeover attempt of the London Stock Exchange (LSE) earlier this month, bought the LME in 2015 for £1.4bn.
The bourse raised fees by over 30 per cent that year as it looked to recoup the hefty deal in a move that promoted anger from LME members.
The 142-year-old LME’s ring, known for its red-leather sofas, is the last open-outcry trading venue in Europe, with other exchanges shifting to electronic trading in recent years.
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In August the LME said it would extend its final open outcry trading sessions, backing its historic method of buying and selling on the floor over a potential shift towards electronic platforms.
Frenzied five-minute dealing windows are to be doubled to 10 minutes on the trading floor of the world’s oldest and largest market for industrial metals.