COPPER SEMINAR: Switch in LME margin methodology would be 'disaster,' Minmetals exec says

If the proposed changes to the London Metal Exchange's margin methodology go ahead, it would be a "disaster" for the provision of credit to clients by its brokers, according to the acting managing director for Minmetals (UK).

Liangmin Gu said that a change would have a "huge" effect on the metals trading company, and would increase costs and reduce the LME's competitiveness against its peers in the metals trading world.
"From the Minmetals perspective, a change in margining methodology from Discounted Contingent Variation Margin [DCVM] to Realized Variation Margin [RVM] would be a disaster for LME credit provision," he told the virtual Fastmarkets Copper Seminar.

"This provision has proven to...

A shift to the later stages of gold and silver bull markets

Gold stocks plunge on metal drop

Gold stocks still up after pullback late in the week

US regional bank slump goes global, driving market into gold

Gold stocks weaker but outperform slump in other sectors