LONDON The London Metal Exchange's (LME) new set of proposals aimed at fixing backlogs in its warehouse network is a first step towards increasing the transparency of its market, Britain's Financial Conduct Authority (FCA) said.
The LME on Thursday sought to appease critics of its global warehousing network by slashing wait times for metal to 50 days and announcing a review of its agreement with warehouse owners.
The FCA, which supervises the world's largest marketplace for industrial metals as part of its oversight of investment exchanges, said it would continue to engage with the LME and other stakeholders to monitor the impact of the measures announced.
"We have engaged with the LME to ensure these changes, including the linked load-in and load-out rule, are consistent with its regulatory obligations," the FCA said in a statement.
(Reporting by Harpreet Bhal; editing by Jane Baird)