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...

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