The London Metal Exchange has temporarily reduced its ring trading fees for the month of August as a "goodwill gesture" to the membership after building issues forced the open-outcry ring to relocate to a back-up site, the LME said Monday.
The total transaction fee applied to ring and kerb trades will be reduced for the month of August 2016 from $0.50 to $0.25 per lot, per leg per side, the LME said in a notice to members.
Ring trading has been hosted at the back-up site in Chelmsford, some 50 km (30 miles) northeast of London, since July 18 after structural problems were discovered in the building that houses the exchange at 10 Finsbury Square.
"In light of these unexpected circumstances, and as a goodwill gesture to the members and traders most directly affected by this, the LME is reducing the transaction fee (i.e. the combined trading and clearing fee) for all Ring and Kerb (identified as R & K trade types) trades entered into during the month of August from $0.50 to $0.25 (therefore the trading fee of $0.25 is waived for the period)," the LME said Monday.
The reduced fee will be reflected via a credit note and rebate following the monthly invoice to members; the rebate will be applied on the same day as the monthly invoicing, the exchange said. All other fees will remain unchanged.
The LME said it "would like to thank its ring dealing members for their continued patience and cooperation throughout this period."
On Friday, the LME said it had been informed by the building manager that repairs were on schedule to be completed by the beginning of this week.
"All building components are being checked, with checks expected to be completed early in the week of 22nd August. A full report will then be issued to the LME along with confirmation of readiness for reoccupation," the exchange said in a notice.
The LME and LME Clear will continue to work from their recovery sites in Chelmsford and Wapping until the end of August, with reoccupation of the Finsbury Square building expected to begin during the week of August 29, it added.
The LME moved to 10 Finsbury Square -- its fifth home since the exchange was established in 1877 -- at the beginning of February, having spent 21 years at its previous location on Leadenhall Street.
