Core Viewpoint - The London Metal Exchange (LME) is taking measures to restrict non-USD metal options trading starting November 10, 2025, due to concerns over the increasing influence of other currencies, particularly the Chinese yuan, in global commodity transactions [1][3]. Group 1: Market Stability and Regulatory Actions - The LME's decision to halt non-USD trading is framed as a move to stabilize the market, but it is widely understood to be a reaction to the growing use of the yuan in commodity pricing and settlement [3][4]. - The LME's actions are reminiscent of past market disruptions, such as the nickel market crisis caused by sanctions on Russia, which led to a temporary trading suspension and regulatory penalties [3]. Group 2: Impact of Currency on Commodity Trading - By 2024, 14.2% of global commodity transactions are expected to be settled in yuan, indicating a significant shift away from USD dominance [3]. - The LME's measures are seen as an attempt to maintain the USD's leading position in the face of increasing yuan adoption by global traders and manufacturers [3][4]. Group 3: Comparison with Other Exchanges - Other exchanges, such as the Shanghai Futures Exchange, Singapore SGX, and Dubai DXB, have adopted more flexible approaches, allowing the market to self-regulate rather than imposing strict trading restrictions [4]. - The LME's rigid approach is criticized as being out of touch with market dynamics, contrasting with the more adaptive strategies employed by other exchanges during past market fluctuations [4].