Guanajuato Silver Company Ltd V.GSVR

LME vrs SME, Fight!

[ErinBrockovich]

@lexcon The LME is essentially offering two different futures contracts---the existing one that is settled based on LME/Comex suppressed prices and another option to contract against the SME price. (they aren't "strengthening ties" to China (although the LME is Chinese owned) all they are doing is using the SME prices to settle their own internal contracts) SME prices have been higher than LME/Comex for a while and represent closer to true price discovery---the LME is losing business to the SME and this is an attempt to keep that portion of the gamblers in house so they can still capture their vig. What is will do is increase the ability to arbitrage the delta between the markets and push prices closer to the more transparent market (SME)