LONDON, Nov 9 (Reuters) - The London Metal Exchange will require LME-registered warehouses to report the amount of all LME-branded metal they store, even material that is not registered for delivery in connection with futures contracts, it said in a statement on Thursday.
The move is part of sweeping reforms which the LME, the world's largest and oldest forum for metals, has been consulting with the market on this year as it aims to boost investors' confidence in the wake of last year's nickel crisis.
"Providing greater transparency and increased reporting of metal stocks stored in LME-registered warehouses is important in ensuring ongoing confidence in the operation of the LME's markets," Robin Martin, LME head of market development, said in the statement.
A warrant is an ownership document for metal stored in LME warehouses that is available for delivery against futures contacts. Large movements of metal from off-warrant to on-warrant status can produce sharp fluctuations in LME prices.