LME to launch swaps 23 January 2012

By Cinnober - 2011.12.12


Press release from London Metal Exchange
The London Metal Exchange (LME) will introduce financially settled swaps for all non-ferrous contracts on 23 January 2012. The average-price contracts are the first of their type to be traded on-exchange in the world and are designed specifically for participants of the physical industry who need to hedge the monthly average price.

“LME swaps will bring transparency to pre- and post-trade prices,” commented Chris Evans, Head of Business Development at the LME. “For the first time swaps users will benefit from a regulated market with the same counter-party default risk protection offered by regular futures contracts”.

Tradable on LMEselect and the 24-hour telephone market, LME swaps enable physical market participants to enter into a fixed price and settle against an unknown floating price (the Monthly Average Settlement Price or MASP) at the end of the averaging period – all in one simple trade. 

For further information or to speak to an LME spokesperson, please contact:
Miriam Heywood
Press Officer  
t +44 (0)207 264 5538   
e miriam.heywood@lme.com 

About the London Metal Exchange
The London Metal Exchange is the world's premier base metals market. It aims to set the global standard for price risk management in metals and provide tools including futures and options contracts for aluminium, copper, tin, nickel, zinc, lead, aluminium alloy and NASAAC, steel billet and the minor metals - cobalt and molybdenum. In 2010, 120.3 million lots were traded at the LME, while the total value of trading on the Exchange was $11.63 trillion. At the close of the year 5.7m tonnes of material were held on LME warrant in 709 storage facilities across 39 locations internationally. http://www.lme.com/ 

Note from Cinnober
Cinnober is LME’s partner in the development of its trading platform technology, based on theTRADExpress Trading System. 

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