London Metal Exchange shares sell at 70 pounds

Class B shares in the London Metal Exchange, the world's biggest non-ferrous metals market, sold at a new high of 70 pounds ($139.5) per share this week, more than double their value when launched in May last year.

The trades, totalling almost 10,000 shares, were recorded on the JP Morgan Cazenove <CAZB> contributory page on Reuters screens.

Two tranches of shares, one of 3,166 and one of 6,367, traded on Tuesday. The previous deal was for 1,833 shares at 60 pouunds per share on May 31.

The B shares are a second class of share made available by the LME last year to allow easier access to the market. To trade as a ring-dealing member (RDM) or associate broker clearing member (ABCM), a company needs to own 25,000 shares, worth 1.75 million pounds at today's prices.

Membership of the LME has become more common among investment banks in recent years as asset managers have added metals futures to their portfolios.

Earlier this month, industry sources said commodities merchant ED&F Man was applying to become the exchange's first new ring dealing member in more than 10 years [ID:nL31699830], while on Tuesday sources said Royal Bank of Scotland (RBS.L: Quote, Profile , Research) was close to buying ring dealer Sempra [ID:nL19106182].

Banc of America Securities joined as an ABCM last year, following Bear Stearns (BSC.N: Quote, Profile , Research), UBS (UBSN.VX: Quote, Profile , Research) and Credit Suisse First Boston in 2005.

Shares in LME Holdings Ltd trade on a restricted so-called matched-trade basis, not freely traded on a bourse. Shareholders wishing to sell can do so through Cazenove, which acts as agent in matching buyers and sellers.