LONDON, Sept 7 (Reuters) - The London Metal Exchange said on Thursday it will cut substantially short- and medium-dated carry fees from Oct. 1 to support its physical user base and encourage the use of its daily date structure.
“The LME will reduce carry fees and intends to introduce a new financial OTC fee with effect from 1 Jan. 2018 to ensure fairness in LME fee structures,” the exchange said in a release.
Short-dated carry trades by ring members and on LMEselect will be reduced to $0.15 and $0.25 respectively. Client contracts for short-dated carries will be reduced to $0.25.
From Nov. 1, a new fee category of medium-dated carry trades will be introduced. Trades in this category executed by ring members and LMEselect will be reduced to $0.25 and $0.45 respectively.
Reporting by Pratima Desai; Editing by Susan Fenton