The LME has today confirmed that LMEmini contracts will launch at 0830 hours on 4 December 2006.
Following the decision to withdraw LME Select Release 5 last week the Exchange, with its suppliers, has conducted an exhaustive evaluation of its Select systems in order to determine how best to proceed with the launch of LMEminis.
It has concluded, after discussion with the platform suppliers, that it should build on the stability of Select 4 and deliver the launch of the new contracts on this platform.
Commenting on the announcement, Martin Abbott, LME Chief Executive, said:
“We are confident that Select 4, with LMEmini contracts added (Select 4 Plus), can deliver all of the trading functionality of Select 5. I see this delay as disappointing and inconvenient but in the circumstances, the most prudent way forward.
“We are very committed to the successful launch of the LMEminis and are focused on ensuring that the launch of these new contracts meets the very real market demand that exists.”
LMEminis - Further Details:
- The LME will launch LMEmini contracts at 0830 hours on 4 December 2006, initially for Copper Grade A, Primary Aluminium and Special High Grade Zinc
- Lot sizes of 5 metric tonnes, with the underlying specification the same as for the full-size parent contracts
- Tradable on LME Select and on the Telephone Market
- Tradable for one prompt date (Third Wednesday of the month) per month for 12 months forward
- Cash settled (i.e. not deliverable) against the Official Settlement Price of the full-size, parent LME contract announced on the cash day for the third Wednesday settlement.
- Margining will be on a daily marked-to-market basis
- The first tradable month will be December 2006
- Trading currency will be US dollars only
- Trading will cease at 12.30 hours on the cash day for the Third Wednesday prompt
- The closing price for the relevant full-size metal contract, as at trading floor closing time, will be used for calculating margins
