London Metal Exchange addresses system disruptions and explores metal tokenization

The London Metal Exchange (LME) has reported technological disruptions affecting certain downstream processing systems. While market trading continued normally, the incident resulted in a large number of trades being recorded with incorrect Prompt Dates. To prevent significant issues with the settlement process, the LME has deferred the settlement of all physically settled contracts with a Prompt Date of 28 October 2026 to the following business day, 29 October 2026.

Separately, the LME is reportedly examining the possibility of tokenizing physical metal stocks stored in its Hong Kong warehouses. This initiative would involve using blockchain-based tokens to represent metal holdings, such as copper, aluminum, zinc, and nickel. The goal is to allow market participants to use these digital assets as collateral for trade financing, potentially offering faster and more transparent transfers compared to traditional paper or electronic warehouse warrants.