Proposed changes to the London Metal Exchange's margin methodology would have detrimental implications for collateral and credit lines, increase transaction costs and brokerage fees, and inhibit scrap recyclers' ability to hedge, according to the non-ferrous division of the Institute of Scrap Recycling Industries (ISRI).
A number of members had expressed "adamant opposition" to any changes that would affect the ability of LME member dealers to extend credit lines, ISRI non-ferrous division chair Christine Gneiding said in a letter to the LME.ISRI represents around 1,300 member companies worldwide that process,...