The London Metal Exchange will hold a meeting in two weeks to discuss a recent board decision to raise trading fees that sparked a backlash from some members at the time it was announced.
According to a copy of an invitation seen by Reuters, the LME invited members to attend a briefing on February 7, saying it wanted to explain to them the rationale behind the fee hike.
We have received representations from a number of member companies and we think it would be useful to hold a briefing session, LME chief executive Martin Abbott and LME chairman Brian Bender said in the invitation.
The LME, which has traditionally kept fees low for its member-owners, said in December it would introduce an exchange user fee.
The new fees will be 25 pence per lot per side for segregated and non-segregated crosses. The current exchange levy of 5 pence per side for segregated and 0.005 pounds per side for non-segregated trades will be scrapped, the LME said.
The new fee is one of several fees levied per client transaction. For a segregated three-month trade, for example, the new levy would mean an increase to 85 pence per trade from 51 pence now.
The move sparked anger amongst some high-level members of the 130-year-old exchange, who said they were not consulted and who rallied their peers to try and persuade the LME board to head off the move.
There are quite a few people angry with the executives so I guess the question is does the LME have a good story to tell when it comes to that meeting or does it fail to persuade the people that there is a convincing case? I'm not sure what the answer is, said a category two LME member.
The LME is currently considering takeover proposals from several bidders, and some members are concerned a new owner could hike fees at a time when their margins are being squeezed.
(Reporting by Maytaal Angel and Susan Thomas; editing by William Hardy)