London Metal Exchange plans to establish position limits to curb excessive speculation.

The Wisdom News APP learned that the London Metal Exchange (LME) is currently holding informal discussions with market participants about proposals to limit excessive positions, aiming to prevent the reoccurrence of "huge bets" that have caused market fluctuations in recent months. According to sources familiar with the matter, LME is considering setting new position limits, one possibility being to prohibit traders from holding contract sizes exceeding the total market inventory approaching the delivery month.