- High Grade Primary Aluminium and Copper Grade A contracts from 63 months to 123 months (ten years)
- Standard Lead from 15 months to 63 months (five years)
- Special High Grade Zinc and Primary Nickel from 27 months to 63 months (five years).
The extension to the prompt dates covers futures contracts only at this stage. All cleared currencies are included.
The LME will establish and publish Closing Prices for the additional months, but it will not establish or publish Official and Unofficial Prices for those months.
The exact date of the commencement of these changes will be confirmed as soon as possible: the LME intention is for the contract extensions to be operable by the end of 2008.
Commenting on this announcement, Martin Abbott, LME Chief Executive said:
“There is already substantial OTC activity in these contract prompt dates. Bringing this activity into the LME environment will give market participants increased transparency, access to liquidity and the benefit of risk management that clearing offers.”
Background:
- The LME is the world’s premier non-ferrous metals market and achieved volumes of almost 93 million lots in 2007, an increase of 7% on 2006 figures and equivalent to $9,500 billion in monetary terms.
- Trading at the LME in non-ferrous metals and plastics takes place across three platforms: through open-outcry trading on the “Ring”; through an inter-office telephone market and through LME Select.
- This year the LME will launch Mediterranean and Far East regional futures contracts for steel billets. Trading via a soft-launch will initially commence on LME Select and the telephone on 25 February, Ring trading will commence on 28 April with the first prompt date on 28 July.
