July 28, 2020 / 3:00 PM / 10 days ago

UPDATE 1-London Metal Exchange to kick off rebate programme for ring members in August

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LONDON, July 28 (Reuters) - The London Metal Exchange (LME) said on Tuesday it would introduce a rebate programme to help its Category One ring trading members weather the financial fallout from the temporary closure of the trading floor during the pandemic.

The rebates will bring the fees paid by the nine Category One members for the exchange’s electronic trading system, or LMESelect, down to ring or floor trading levels.

The programme, to be funded by a proportion of LME’s enforcement proceeds, will run from August to December, said the exchange, which is owned by Hong Kong Exchanges and Clearing Ltd.

The LME, the world’s oldest and largest market for industrial metals, temporarily closed its London trading floor, in March due to the coronavirus.

This meant its Category 1 members no longer benefited from the lower fees applicable to ring trading but were still incurring costs for maintaining the Ring infrastructure, the LME said.

The exchange said if the ring was still suspended at the end of 2020, it would “consider the appropriate measures that might be required in its 2021 fee schedule, should the exceptional circumstances persist.”

Reporting by Zandi Shabalala; Editing by Jon Boyle and Susan Fenton

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