- Changes will reflect the LME’s strategic goal of enhancing liquidity on the LMEselect electronic platform.
- Client electronic trading and clearing fees to drop by between 7.4% and 8.5%.
- Inflationary increase of between 3.4% and 3.7% for member electronic transaction fees.
- “All-in” transaction cost for a client outright trade on LMEselect falling by 4.5%.
- Key physical market transactions (Ring and short-dated carries) limited to inflationary fee increases.
- Larger increases for all other inter-office transaction fees (between 20.0% and 20.3%), except for options which will only see an inflationary increase.
- No change to financial OTC booking fee given recent changes, with future intention to reflect inter-office fee increase.
- Most fee changes introduced from 1 January 2026; venue-differentiated client transaction fees to apply from 1 March 2026.
The LME Group has today set out its combined trading and clearing fee schedule for 2026. The changes reflect a recalibration of the schedule to align with the LME’s strategy to enhance electronic liquidity and price transparency while supporting physical market trading practices.
Matthew Chamberlain, LME Chief Executive Officer, said: “As we continue to advance our market structure modernisation work, we will be aligning our fee schedule more closely to our strategic aspirations. As such, we are pleased to be reducing client electronic fees, underscoring the confidence we have in our vision to enhance electronic liquidity through greater transparency and price competition.
“While we believe that higher fees are appropriate for more bespoke inter-office trading, we remain committed to maintaining lower fees for trades that are key to physical market trading practices, such as Ring trades and short-dated carry trades on all venues – which ultimately benefit the whole market.”
Client fee reductions for electronic trading
Client transaction fees for trades executed on LMEselect will see significant reductions of between 7.4% and 8.5% (across outrights and carries). This is intended to incentivise centralised electronic trading that contributes to transparent price formation.
This means that for a client “all-in” LMEselect trade for an outright date (which includes the combined member and client fees), there is an overall reduction of 4.5%. This will be of value to the LME’s growing electronic trading community, which has been a key contributor to recent LME volume growth.
More broadly, as part of its market modernisation measures, the LME is introducing a new crossing order type in 2026, which will allow any exchange trade to be made visible on the electronic order book. This means such trades would qualify for the discounted electronic fees and facilitate lower-cost execution for any type of client, including trades subject to the LME’s forthcoming block thresholds.
Additionally, give-up and client trade-at-settlement (TAS) fees will be held flat, reflecting their important role in the enablement of electronic liquidity.
Larger inter-office trading and clearing fee increases
Larger increases to both member and client inter-office fees (between 20.0% and 20.3%, across outrights and long- and medium-dated carries) will also be introduced, which again reflect the LME’s desire to direct as much trading as possible to the transparent electronic orderbook. Subject to block threshold rules, members and clients will still be free to execute in the inter-office market, with more bespoke inter-office trades attracting a higher fee.
As an exception, options trading and clearing fees will rise only by inflation, acknowledging the forthcoming electronic options market launch as outlined in the recently published options roadmap.
Key physical market activities
Short-dated carries, used by those wishing to align hedges with physical contracts or shipments, will see no fee change when executed on the Ring and will see an inflationary fee increase when executed in the inter-office market. This will support the LME’s date structure and physical market sector.
Additionally, the LME intends to expand the definition of a short-dated carry to coincide with the introduction of block thresholds. This means all users will benefit from a lower fee for a wider set of carry trades, irrespective of the trading venue.
Financial OTC booking fee held at current levels
As previously stated, the LME’s intention is that the “non-lookalike” financial OTC booking fee should be aligned with inter-office fees, and that the “lookalike” financial OTC booking fee should be charged at a premium. However, given the recent introduction of the differentiated OTC booking fee, the LME will not reflect the inter-office fee increase in either booking fee at this time.
Other inflationary fee increases
All other transaction fees will increase in line with inflation (between 2.6% and 3.7%). This includes member electronic fees and all Ring fees, given the significance of the Ring for the physical market. All other ancillary fees will generally be subject to an inflationary increase of approximately 3%.
The new fee schedule will go live from 1 January 2026, with the exception of client transaction fees, which will apply from 1 March 2026, allowing members time to implement any process changes required specifically in relation to client order types. In the interim period, from 1 January to 28 February 2026, the LME will apply inflationary increases to the existing client transaction fees.
