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29 September 2008
The London Metal Exchange (LME) has today launched extended prompt dates for Primary Aluminium, Copper Grade A, Special High Grade Zinc, Primary Nickel and Standard Lead contracts.
Primary Aluminium and Copper Grade A, now trading out to 10 years, become the world’s furthest forward, physically delivered, exchange-traded commodity futures contracts. Special High Grade Zinc, Primary Nickel and Standard Lead will be traded out to 5 years.
Commenting on this announcement, Martin Abbott, LME Chief Executive said:
“The extensions of the prompt dates are the culmination of a long period of research and analysis by the LME. There is already significant OTC activity in these contract prompt dates. Bringing this activity into the LME environment will give market participants the increased flexibility of greater transparency, access to liquidity and the benefit of risk management that clearing offers.”
About the extend prompt dates
The following futures contracts will be extended:
- High Grade Primary Aluminium and Copper Grade A contracts from 63 months to 123 months (ten years);
- Special High Grade Zinc and Primary Nickel from 27 months to 63 months (five years);
- Standard Lead from 15 months to 63 months (five years).
The Official and Unofficial prices remain unchanged. However, the Exchange will publish a new 27 month reference price for Standard Lead.
The LME will establish and publish Closing Prices for the additional months.
Traded Options and TAPOs tradable months will not be extended for any contract.
Prompt dates for the Tin, Aluminium Alloy, North American Special Aluminium Alloy (NASAAC), Plastics, Steel, Cleared Average Price Swaps, Index and LMEmini contracts remain unchanged.
Notes to editors:
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, steel and plastics takes place across three platforms: through open-outcry trading on the ‘Ring’, through an inter-office telephone market and through LMEselect electronic trading platform;
On 25 February 2008 the Exchange launched Mediterranean and Far East steel billet futures contracts;
The new trading calendar 2009 -2019 is available at: http://www.lme.com/calendar.asp.
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