London Metal Exchange may temper trading fee rise after complaints

The London Metal Exchange says it might revise a planned increase in trading fees after customers complained that it could hurt their businesses.

The 137-year-old LME announced an average 34 per cent increase in fees in September as owner Hong Kong Exchanges and Clearing moved to boost profits after buying the exchange for US$2.2 billion.

But customers protested. Broker Triland Metals warned that the higher fees, due to take effect on January 1, would force brokers and banks to ditch some commission-free terms and review their business models.

The actual cost of transacting in the LME's open outcry pit and on its electronic platform could double next year, Triland said.

The 34 per cent increase highlighted by the LME was an average figure and included clearing fees, which were unchanged.

The LME said yesterday it was committed to the fee increase, which would allow it to invest more in the world's biggest industrial metals market, but was also keen to hear feedback.