What are LME contracts?
Table of Contents
What are LME contracts?
LME contracts are physically backed but they are rarely held to their physical settlement, nor are they required to be for effective risk management. A producer that has hedged a future physical sale by selling an LME contract will buy it back when they wish to close the hedge.
What is LME cash?
The “spot price” of a type of Base Metal is the LME Cash Settlement Price, which is the last cash offer price for the relevant Base Metal during the day’s trading. The LME Cash Settlement Price is determined by a number of factors, including, in part, by the amount of industrial metal available for trading on the LME.
Is copper traded on LME?
Contract Description LME Copper contracts trade on the London Metal Exchange, which began trading in the metal at the start of the exchange in 1877. The contracts require physical delivery of the asset for settlement, and deliverable assets for the contracts are 25 tonnes of Grade A copper cathode.
What is LME 3 month contract?
LME contracts The 3-month LME rolling contract (contract with the 3-month prompt date) is the most liquid contract on any given trading day – it’s the anchor price for the market. Most participants tend to “trade out” of the 3-month contract and “roll” into a contract with the desired prompt date.
What is Comex and LME?
Copper traded on the London Metal Exchange (LME), or LME copper, is priced per metric ton (MT); COMEX copper, or contracts traded on the New York Mercantile Exchange’s (NYMEX) COMEX division, are priced per pound. Both markets provide valuable information for copper market followers and copper stock investors.
Who can trade in LME?
Non-members wishing to trade LME contracts can do so through Category 1, 2 and 4 Members (and their associated ISVs). 2) Alternatively, participants can access LME markets by becoming members themselves.
What is KERB trading LME?
An informal trading period on the London Metal Exchange that takes place in the ring beginning at 1:15 p.m. GMT, and ending at 3:10 p.m. At this time, eight non-ferrous metals contracts and the silver index contract trade simultaneously.
What is LME business?
The London Metal Exchange (LME) is a commodities exchange that deals in metals futures and options. It is the largest exchange for options and futures contracts for base metals, which include aluminum, zinc, lead, copper, and nickel.
Who runs the LME?
The LME is located in London, England, but has been owned by Hong Kong Exchanges and Clearing since 2012. 1 The prices discovered on the LME are considered the standard global prices for base metals.
Is LME regulated?
From 3 December 2019, the LME is also authorised and regulated by the Financial Conduct Authority in respect of its benchmark administration activities under the European Benchmarks Regulation.
Who governs LME?
the Financial Conduct Authority
From 3 December 2019, the LME is also authorised and regulated by the Financial Conduct Authority in respect of its benchmark administration activities under the European Benchmarks Regulation.
Why did the LME stop trading?
LONDON — The London Metal Exchange said Wednesday it had been forced to halt the nickel market once again after a “systems error” allowed a small number of trades to go through below its newly imposed daily price limit. The LME said trades executed below the lower daily price limit would be canceled.
