Jan. 11 (Bloomberg) -- Three directors of the London Metal Exchange wrote to members of the world’s biggest metals bourse opposing a plan to increase trading fees before a potential takeover, a person familiar with the letter said.
James Land, managing director of Amalgamated Metal Trading Ltd., Gavin Prentice, managing director of Marex Spectron Group Ltd. and Michael Overlander, chief executive officer of Sucden Financial Ltd., signed the letter, said the person, declining to be identified by name because the note hasn’t been made public. It was sent to the 12 bourse members who can participate in open outcry trading on the exchange’s floor.
The LME, founded 135 years ago, said in December it plans to raise trading fees by 67 percent in March. The fees are “a matter for the board and are discussed every year,” Miriam Heywood, a spokeswoman for the exchange, said in an e-mailed statement today. Fees will rise to 85 pence per trade from 51 pence, effective March 1, the LME said last month.
The exchange, which says it handles more than 80 percent of global trade in metals futures, is trying to increase revenue by creating its own clearing system and raising fees. The LME, owned by its members, handled $11.6 trillion of contracts in 2010. It started sending memorandums of information to potential buyers this month after saying in September it got more than 10 “expressions of interest.”
Spokesmen for Amalgamated Metal Trading and Sucden declined to comment while a spokesman for Marex wasn’t immediately able to comment. The letter was reported earlier today by the Financial Times.
--Editors: Claudia Carpenter, Stuart Wallace
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