Alcoa CFO to Meet With CFTC To Discuss Metals Warehousing Reform

Mining Weekly reported that the Alcoa CFO and a chairman from the US Commodity Futures Trading Commission will meet this week to discuss metals warehousing reform.
As quoted in the market news:

The meeting between US Commodity Futures Trading Commission (CFTC) chairperson Timothy Massad and Alcoa CFO Bill Oplinger will take place on Wednesday afternoon. The meeting comes as the aluminium company has ramped up public criticism of the regulator’s intervention in the London Metal Exchange’s (LME) warehousing reform plan.
The dispute highlights aluminium producers’ concerns about the impact of LME rule changes on sinking prices. Recent LME reforms have increased the rate at which metal must be delivered out of warehouses, a response to controversial financing deals, and aluminium has flooded the market partly as a result.
In a letter late last month, Alcoa general counsel Max Laun asked the CFTC to retract a letter announcing its decision to delay ruling on the LME’s application to register as a “foreign board of trade” in the US. The letter accused the CFTC of overstepping by attempting to regulate a foreign exchange while pushing for the LME, the world’s oldest and biggest market for industrial metals owned by Hong Kong Exchanges and Clearing to introduce other reforms, including a cap on warehouse rents.

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