LONDON, Feb 9 (Reuters) - The London Metal Exchange said on Friday that volumes on short- and medium-dated carry trades rose in January following a reduction in trading fees last year.
The LME cut fees on short-dated carries in October and on medium-dated carries in November in a bid to revive volumes after total turnover on the exchange fell by 4.3 percent in 2015 and 7.7 percent in 2016.
The LME, owned by Hong Kong Exchanges and Clearing Ltd , on Friday said average daily trading of short-dated carries was 4 percent higher in January than the daily average over the period from January to September last year, before fees were cut.
It said average daily volumes on medium-dated carries was 19 percent higher in January than the average over January to October last year. Medium-dated carry fees were cut one month later than the short-dated carries.
Carry trades are used to link contracts that mature on different dates.
Reporting by Peter Hobson. Editing by Jane Merriman