The LME Delayed Reporting Requirements For Over-the-counter Transactions By Seven Weeks

The London Metal Exchange has delayed for seven weeks a requirement for members to report all their over-the-counter (OTC) positions, a move launched after OTC trading was partly blamed for a spike in nickel prices in March.

In a statement on Friday, the LME said it had moved the implementation date from July 18 to September 5 to ensure correct and accurate reporting of data.

"The LME has been in dialogue with a number of members and other interested parties who have raised concerns about their ability to meet the proposed implementation date," it said.

The LME, which is owned by Hong Kong Exchanges and Clearing LTD., was forced to suspend nickel trading and cancel all trades on March 8 because of disorderly activity caused by some over-the-counter nickel short positions.

The exchange said on June 17 that it would require members to report weekly over-the-counter positions in all physically delivered metals, including aluminium, copper and nickel.

The LME, the world's oldest and largest market for industrial metals, also announced that holders of large over-the-counter positions would have to explain their positions to the exchange.

Benchmark nickel prices on the LME doubled to a record above $100,000 a tonne on March 8 on expectations that China's Qingshan Holdings And other companies would have to buy back their short positions, which bet on falling prices.

The UK financial regulator launched a full investigation into how the LME suspended nickel trading in April, and the LME has commissioned its own independent review.

Us hedge funds Elliott Associates and Jane Street Global Trading are suing the LME for $456m and $15.3m respectively over cancelled nickel trades.