The trading of LMEmini contracts, for Copper Grade A, Primary Aluminium and Special High Grade Zinc, commenced yesterday on the London Metal Exchange (LME).
LMEminis are cash-settled monthly contracts, in smaller tonnages than standard LME contracts, and traded electronically, via LME Select, and on the Exchange’s 24 hour telephone market.
Commenting on the launch, Martin Abbott, LME Chief Executive said:
“I am delighted to confirm that LMEminis began trading, as planned, at 0830 hours today.
“The new contracts are a natural extension of the LME’s franchise and products distributed via its member firms. It is a franchise that we will continue to develop, building on the extensive reach of the LME Member Firms and the fact that the Exchange currently represents the overwhelming proportion of international base metals futures trading.”
LMEminis - Further Details:
- LMEminis are in lot sizes of 5 metric tonnes, with the underlying specification the same as for the full-size parent contracts.
- Tradable on LME Select and on the telephone market.
- Tradable for one prompt date (Third Wednesday) per month for 12 months forward.
- Cash settled (i.e. not deliverable) against the Official Settlement Price of the full-size, parent LME contract announced on the cash day for the Third Wednesday settlement.
- Margining will be on a daily marked-to-market basis.
- The first tradable month is December 2006.
- Trading currency will be US dollars only.
- Trading will cease at 12.30 hours on the cash day for the Third Wednesday prompt
- The closing price for the relevant full-size metal contract, as at trading floor closing time, will be used for calculating margins.
