The LME is permanently establishing "position borrowing rules" in order to crack down on market squeeze practices.

On February 20th, the London Metal Exchange announced that it would permanently implement comprehensive rules aimed at limiting the impact of large trading positions on the market, in order to control the price volatility of metals such as aluminum. If a holder holds positions exceeding 50% of the available inventory in the LME warehouse system in the month before the contract expires, they must lend the positions to other buyers at a capped rate until the position is reduced to below 50%. Compared to the temporary rules in 2025, this not only expands the scope of application but also includes options positions in the front months in the regulatory framework. This move is a response to the accumulation of large positions in the aluminum market by major trading giants such as Mercuria, Vitol, and Gunvor.