London Metal Exchange makes position restrictions permanent to boost market stability
The London Metal Exchange has finalized permanent rules requiring large position holders to lend back to the market. These measures aim to ensure stability.
Insights:
The London Metal Exchange (LME) announced on February 20, 2026, that it will impose permanent restrictions on members holding large positions in nearby contracts. This decision follows a member consultation and is intended to prevent potential market corners while improving market stability, transparency, and confidence. The move represents a structural rule change at the world's oldest and largest industrial metals market, addressing recent spikes in nearby copper premiums and inventory movements.
