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All Ring Dealing Members, Associate Broker Clearing Members, Associate Trade Clearing Members and Associate Broker Members of the London Metal Exchange (“the Exchange”) are required to hold a minimum number of B Shares in LME Holdings Limited (“Holdings”) as a condition of membership. B Shares do not carry any voting rights in Holdings nor do they have any entitlement to receive dividends or any other distributions whether on a winding up or otherwise.
On 22 March 2007, the Exchange announced that it had commenced the process of designing a mechanism to help those new applicants who wished to join the Exchange acquire the B Shares in Holdings necessary for membership (“the B Share Scheme”). Acquisition of B Shares will be effected either by the issue of new B Shares or, insofar as previously issued B Shares are made available by existing shareholders, the transfer of such shares.
Preparatory work is progressing as planned and, based on current estimates, the Exchange expects to be able to launch the B Share Scheme by the beginning of July 2007, at which time detailed documentation on the B Share Scheme will be made available to eligible applicants. The Exchange currently expects the initial allotment of B Shares to be concluded by the middle of September 2007.
Prospective applicants should note that they will be required to have satisfied all other membership requirements of the Exchange prior to participating in the B Share Scheme, with the exception of the testing of systems connectivity to the Exchange and LCH.Clearnet and the grant of membership of LCH.Clearnet. A summary of membership requirements is available by clicking here.
For further guidance on membership requirements and the full criteria and application process to be fulfilled with regards to each category of membership of the Exchange, please contact Neil Banks at the Exchange (tel: +44 (0)20 7264 5555, e-mail: neil.banks@lme.com).
