On Jan. 13, UK LME reminded of rules on trades chronologic ordering.
UK LME published Notice 25/009 entitled Matching Rules Relating to Chronologic Leg Ordering of Carry Trades, reminding members of steps required to ensure compliance.
Follows UK LME Apr. 2024 detailed penalty notice, fixed penalty offense, see #207063.
Notice Summary
Notice reminded members of Matching Rules in relation to chronological leg ordering of carry trades entered in LMEsmart, and sets out steps to ensure compliance with Rules.
Under Paragraph 10, when submitting carry trades the Matching System, members must enter near leg first, followed by all other legs in chronological Prompt Date order
The Notice confirmed basis under which some actions are breaches of Matching Rules.
Fixed Penalties
As part of this process, UK LME reminded members fixed penalties will start applying to Carry trade submissions with incorrect chronological leg ordering as of Mar. 3, 2025.
This follows Notice 24/135, dated Apr. 2, 2024, when UK LME set out conduct which would constitute a Fixed Penalty Offence and that is therefore subject to fixed penalty.