The recent purchase, once closed, would increase New York-based JP Morgan’s stake to 10.9% in the LME, where it already owns more than 6% stake.
In addition, JP Morgan is also planning to buy 25,000 B-shares in the LME held by MF Global for GBP2m.
Following its bets that went bad on European sovereign debt, MF Global filed for bankruptcy protection in October 2011.
Its British subsidiary MF Global UK, which normally hold the right to trade on the floor, was stopped from trading on the metals exchange on 31 October 2011.
It was reported the stake selling is expected to be a boost for creditors of futures brokerage MF Global and for its clients.
MF Global’s special administrator in Britain, KPMG, has been trying to sell the unit’s stake.
