The London Metal Exchange proposed to introduce position limits for the first time. Initially the limits will apply only to the exchange’s new aluminum premium contract. However, LME reserves the right to extend limits to other contracts. Currently, in order to help militate against the risks of market squeezes, and manipulative or abusive conduct, LME members are subject to the exchange’s lending guidance which potentially requires dominant position holders to sell relevant contracts to the market at published levels for a set period of time. (Click here to access a copy of LME’s Metal Lending Guidance.) LME claims that requiring lending is effective because of the “prompt day structure of [LME contracts] which permits lending at specified rates for a short period.” However, this technique won’t work for the new aluminum premium contract that only will have monthly prompt dates. The Markets in Financial Instruments Directive II contemplates position limits for physical metals contracts such as LME contracts. MiFID II is expected to become effective January 2017. Comments on the LME’s proposals will be accepted through October 15, 2015.