LME to boost revenue by allowing metal as collateral

London

THE London Metal Exchange (LME) expects to boost revenue from a new service that allows members to use metal as collateral instead of cash and bonds, an executive of the exchange's clearing house said on Monday.

The LME expects a big uptake for the service launched last week that expands the range of allowed collateral to warrants - ownership documents for metal stored in LME-approved warehouses, said Adrian Farnham, chief operating officer of LME Clear.