The London Metal Exchange announced new accountability levels and position limits for LMEprecious contracts. Effective with the launch of LMEprecious on July 10, the accountability level for any member or client account carrying gold or silver positions will be 4,000 lots net across all prompt dates, while the position limit will be 8,000 lots net across all prompt dates. Exceeding an accountability level does not impose any automatic obligation on a position holder to report directly to the LME or reduce or adjust the position. However, the LME member will be required to provide further information about the account or linked accounts upon request by the LME. When a position limit is violated, the LME will request further information regarding the position and the LME may give directions to the member regarding the account or the linked accounts. Members are obligated to ensure their clients comply with position limits and any directions the LME may issue. (Click here for an overview of the generally unique market structure and functioning of the LME, including the exchange’s unique trading and margin systems.)