The Exchange currently offers TAPO contracts for copper grade A and high grade primary aluminium. The success of these contracts and strong demand from other sectors of the metals industry has prompted the LME to introduce TAPO contracts for other metals.
It is anticipated that trading will commence in September 2000 with the first prompt month being October 2000. The trading currency will be US dollars with strike price gradations of US$1 and a minimum fluctuation in premiums of US$0.01.
David King, LME chief executive, said "I am delighted to announce the decision to extend our range of TAPO contracts. The initial contracts for alumiunium and copper have proved extremely successful. This is because they provide excellent hedging opportunities by precisely matching the pricing of physical contracts. Like all option contracts, they also offer the flexibility to participate in favourable market price movements."
