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2025-10-30 20:22:22
[LME Plans Permanent Rules to Limit Large Positions in Near-Month Contracts] ⑴ The London Metal Exchange (LME) announced on Thursday that it plans to develop permanent rules to restrict members holding large positions in near-month contracts in the context of low inventory levels. ⑵ In June, the LME implemented temporary restrictions after a surge in premiums for near-month copper contracts. The LME stated that these measures were introduced to address the low inventory environment and the problem of excessive holdings in near-month contracts, prompting the LME's special committee to instruct market participants to reduce large positions on the exchange. Recently, the premium for near-month zinc contracts has surged to a record high due to a decline in inventories of approximately 85% since the beginning of the year. ⑶ The LME stated, "We believe that developing a permanent rule applicable across the entire market to address market participants holding large positions in near-month contracts is the most appropriate measure to maintain market order."
