LME Unveils Proposal to Launch Eight Additional Futures Contracts

Rule changes, if any, would be effective from Q4 this year.

SEATTLE (Scrap Monster): The London Metal Exchange (LME) has proposed plans to launch a broader range of contracts. It intends to launch eight new cash-settled futures contracts effective January next year. This includes three regional hot-rolled steel coil contracts- for North America, Northern Europe and FOB China, two regional aluminum premium contracts (US and European duty paid) and the remaining three for alumina, cobalt and molybdenum.

Besides, the LME plans changes to rule in carrying out its price discovery trial for LME Nickel 3-month Closing Prices in the initial quarter of 2019, for which members and market participants could provide feedback. This will result in formulation of an electronically derived methodology for determining closing prices, further to assessment of relative effectiveness of electronic and Ring-based price recovery. During the trial period, all LME official closing prices, except for 3-month LME Nickel contracts, will continue to be determined on the Ring.

Matthew Chamberlain, London Metal Exchange CEO stated that exchange is committed to launch new products in response to market demand. LME will continue to explore variety of product development approaches to ensure ongoing growth across its contract offering, Chamberlain added.

In addition, the LME has proposed a number of rule amendments for the LME and LME Clear, the responses to which will be accepted until 28 September, 2018. Rule changes, if any, would be effective from Q4 this year.

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