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- LMEswaps win FOW new metals product of the year
- Volumes traded since launch hit 15,511 lots
- LMEswaps help market to comply with new regulatory landscape
The London Metal Exchange (LME) won the FOW award for best new metals product of the year with its LMEswaps contracts. LMEswaps, launched in February, have traded 15,511 lots so far this year, the equivalent of $775 million.
“LMEswaps enable members to bring OTC monthly average trades onto exchange,” said Chris Evans, head of business development at the LME. “We’re going to see more of these contracts in the futureas new regulation, such as the Dodd Frank Act in the USA, makes it advantageous to transact and clear OTC business through exchanges like the LME.”
Tradable on LMEselect and the 24-hour telephone market, LMEswaps enable physical market participants to enter into a fixed price and settle the difference against the floating price (the Monthly Average Settlement Price or MASP) at the end of the averaging period – all in one simple trade.
