LME announcement: nickel market resumes pre-trading nickel contract or position transfer instructions

On March 11, the London Metal Exchange (LME) issued a notice saying that (LME) and (LME Clear), the London Metal Exchange, had received a series of requests from clients to transfer nickel contracts and positions related to the transaction. In response to these requests, LME detailed the nickel contract position transfer process of LME and LME Clear, as follows:

1. From the date of this notice, until the nickel market is reopened, the following nickel contracts or positions are allowed to be transferred using LMEsmart and LMEMcury:

(1) LMEsmart internal transfers between members or within their own customer account structure (as defined in the matching rules) are for the benefit of the same base customer or indirect customer in each case;

(2) the transfer of positions within the same member organization or between accounts between two member organizations is for the benefit of the same underlying or indirect customer in each case.

2. Any license transfer shall be exempted from the transfer fee.

For the avoidance of doubt, other transfers of nickel related to the contract or position of the Company are not allowed (including other types of transactions that meet the matching rules, such as OTC transactions, and transfers that may lead to changes in potential or indirect customers).

4. Any license transfer must be based on the original transaction price or the closing price determined on March 7, 2022.

5. Any member organization that wishes to carry out the license transfer, and any member organization that receives the license transfer, must first provide the following certificate to LME:

(1) the requested transfer is a license transfer;

(2) the license transfer will take effect at the original transaction price or the closing price on March 7;

(III) the transferring or receiving member acknowledges that it is its responsibility to ensure that it has the full consent of any and all customers or indirect customers to the transfer of the license;

(4) the receiving member organization has prepared the necessary customer documents with the customer to ensure that the customer contract is finally signed.

6. Any license transfer shall be subject to the prior consent of LME and LME Clear, and any member who conducts or receives license transfer must comply with the LME Group position transfer procedures and abide by the LME manual and LME Clear rules.

7. Please note that the trading data released by the London Metal Exchange may include any contracts resulting from the transfer of licenses. But that does not mean new deals and the reopening of the nickel market.

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