London Metal Exchange plans to implement new position limits regulations starting in July next year.

On December 15th local time, the London Metal Exchange issued a statement announcing plans to implement new position limits regulations starting from July next year in order to comply with UK financial regulatory authorities. The statement mentioned that the new arrangement will enhance LME's ability to directly adjust and manage position limits, ensuring appropriate limits are maintained and responding to market trends. The new rules will apply to key contracts involving core aluminum, copper, lead, nickel, tin, and zinc futures products on the exchange; as well as related contracts involving options and trading settlement agreements. Adjustments include calculating positions on a net basis at the individual entity and group levels, and replacing existing accountability levels with accountability thresholds to allow LME to have a more comprehensive understanding of risk exposure.