The LME must have the legal authority to pick and choose how it handles defaulting parties, or does this set a precedence that any member can take advantage of in future?
To renege on a bet usually means you are excluded from participating in future, do you see this as a possibility?
It seems an extreme risk that the LME has taken, surely they are no longer credible?
One key point is missing, the customers P&L’s were adjusted, so the clearing/members houses didn’t have to pony up. It saved all the members from paying and passed the risk/losses onto clients.
You should have married Tina Turner and she could have been waking you up every morning with the "simply the best" song 😂😂😂😂😂
Nothing to see here;
1) LME owned by the Hong Kong Stock Exchange
2) Tsingshan Holding Group facing Margin calls
3) CCBI (China Construction bank) is the broker
4) https://www.telegraph.co.uk/business/2020/02/08/deafening-silence-london-metal-exchange-nickel-market-manipulation/
BAU
The LME must have the legal authority to pick and choose how it handles defaulting parties, or does this set a precedence that any member can take advantage of in future?
To renege on a bet usually means you are excluded from participating in future, do you see this as a possibility?
It seems an extreme risk that the LME has taken, surely they are no longer credible?
One key point is missing, the customers P&L’s were adjusted, so the clearing/members houses didn’t have to pony up. It saved all the members from paying and passed the risk/losses onto clients.