CME Blocked Istim Warehouse After Objections from Metal Traders

CME Group’s recent decision to deny an aluminum warehouse registration by Istim Metals was influenced by feedback from metal market participants, some of whom objected to the listing, according to people familiar with the matter.

Istim, which already dominates metals storage on the London Metal Exchange, applied in July for accreditation as a delivery point in Gwangyang, South Korea, for CME’s Comex aluminum contract. CME sought input from market participants, some of whom raised concerns about a controversial fee increase announced earlier this year by the warehousing company at its LME-registered depots.

The feedback was a material factor in CME’s ...