LME takes aim at traders’ Russian metal games with new rules

The new rules will increase scrutiny of so-called “rent share” deals. — Bloomberg

LONDON: The London Metal Exchange (LME) is imposing new rules surrounding the movement of metal in its warehousing network, taking aim at a lucrative and complex trading opportunity that emerged after the imposition of sanctions on Russian metal earlier this month.

The measures announced are designed to undercut the economic rationale for withdrawing Russian metal that’s already on the LME and selling it back on the exchange under a new, less-desirable category.