This left the traders who sold tin holding the bag. Their parent companies had to absorb millions of dollars in losses. Traders, analysts and other market watchers now are blaming the LME for its lack of reliance on that very institution. The exchange also doesn't record these trades. Many orders also are placed through chains of brokers before they reach the trading floor.
Traders can mask their positions by directing their trades through a dozen or so intermediaries.
The LME has its cheerleaders, though. There must be something good there. One bad apple does not mean the whole lot is bad. No, but it suggests those doing the picking should be more selective. And that takes us to Japan.