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LME Proposes New Position Limit Framework
The London Metal Exchange has unveiled proposed regulatory adjustments regarding position limits for commodity trading. The new framework aims to enhance market stability and risk management across derivatives trading activities. These position limit modifications represent an important development in how major exchanges approach safeguards and participant exposure thresholds. The proposal reflects ongoing efforts within traditional financial markets to balance market liquidity with systemic risk mitigation—a principle increasingly relevant as trading platforms across sectors, including crypto exchanges, continue refining their compliance and safety protocols.