Alcoa raises criticism of CFTC over LME warehouse reform

Alcoa ramps up its criticism of the Commodity Futures Trading Commission (CFTC)'s intervention in the London Metal Exchange's warehousing reform plan, challenging the commodity regulator's handling of the issue for a second time in as many months.

In a letter late last month, Alcoa general counsel Max Laun called on CFTC chairman Timothy Massad to retract the regulator's decision to delay ruling on the LME application to register as a "foreign board of trade" in the U.S. The letter again accused the CFTC of overstepping its authority in attempting to regulate a foreign exchange as it privately pushed for the LME to introduce reforms, including a cap on rents at warehouses.

The move shows rising concerns among aluminum producers about the impact of the LME rule changes on prices, which have plunged near or below breakeven for many global smelters.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.