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Hong Kong Exchanges and Clearing Limited (HKEx) plans to introduce its second group of London Metal Mini Futures contracts – London Nickel Mini Futures, London Tin Mini Futures and London Lead Mini Futures, pending regulatory approval and market readiness. A timetable will be announced in due course.
The addition of the three Renminbi-denominated mini metals contracts will expand the range of commodities products HKEx offers, broaden its base of potential market participants and provide more arbitrage opportunities. HKEx introduced its first London Metal Mini Futures contracts – London Aluminium Mini Futures, London Copper Mini Futures and London Zinc Mini Futures – in December 2014.
"Our strategy is to use our markets in Hong Kong and London to meet the needs of base metals users, producers and investors in different time zones," said HKEx Chief Executive Charles Li. "These new Renminbi-denominated contracts will provide additional hedging and risk management tools and create more arbitrage opportunities."
"Three new London Metal Mini Futures in Hong Kong will give Asia's market participants even greater access to the LME's highly respected global reference prices," said Garry Jones, HKEx's Co-head of Global Markets and Chief Executive of the London Metal Exchange (LME).
Contract details
The three new mini metals contracts will be traded on Hong Kong Futures Exchange Limited (HKFE) and cleared through HKFE Clearing Corporation Limited. The trading hours of the cash-settled futures contracts will be 9:00 am to 4:15 pm and 5:00 pm to 1:00 am the next morning Hong Kong time Monday to Friday, excluding the public holidays on HKEx's trading calendar. Pre-holiday arrangements will be the same as those for the other contracts traded on the HKFE. Key contract specifications are shown in the table below.
Key Contract Specifications
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London Nickel Mini Futures |
London Tin Mini Futures |
London Lead Mini Futures |
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Underlying |
Primary Nickel |
Tin |
Standard Lead |
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Trading Symbol |
LRN |
LRS |
LRP |
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Contract Size |
1 tonne / contract |
1 tonne / contract |
5 tonnes / contract |
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Trading Currency |
Renminbi, or RMB |
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Contract Months |
Spot Month and next 11 calendar months |
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Minimum Fluctuation |
RMB10 / tonne |
RMB5 / tonne |
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Trading Hours |
Day Trading Session: 9:00 am - 4:15 pm; |
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Last Trading Day (LTD) |
The LTD determined by the LME for its Nickel/Tin/Lead Futures (usually two business days before the third Wednesday of the Spot Month). If it is not a Hong Kong business day, the LTD shall be the immediately preceding Hong Kong business day. |
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Final Settlement Price (FSP) |
The FSP shall be a whole number, determined by the Clearing House, and shall be the Official Settlement Price determined and published by the LME for its Nickel/Tin/Lead Futures and converted to RMB equivalent using the spot USD/RMB pricing published by the Treasury Markets Association in Hong Kong at 11:15 am Hong Kong time on the LTD. |
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Settlement Type |
Cash-settled |
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Holiday Schedule |
HKEx holiday schedule |
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Exchange Fee |
RMB3.00 |
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Calendar Spreads |
Cover Spot Month and the next 11 calendar months |
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| Note: | London Metal Exchange, Hong Kong Futures Exchange Limited and HKFE Clearing Corporation Limited are wholly-owned member companies of the HKEx Group. |
