LME Lead TAPOS (Traded Average Prices Options) Summary Contract Specification

Contract month

• Monthly out to 15 months

Option type

• Asian Option

Last trading day

• Business day preceding the Declaration Day of the relevant month before 18:00

Last matching and registration

• 18:15 on the penultimate trading day of the prompt month

Declaration date/time

• Automatic declaration of in-the-money TAPOs at 15.00 on the last business day of the TAPO month

Premium tick size

• $0.01 USD (one cent)

Minimum strike price movement

• USD $1

Exercise of the option

LCH.Clearnet auto exercise TAPOs. Exercise will result in two futures contracts, one at the strike price and the other at the Monthly Average Settlement Price (MASP). The effect is to generate a cash settlement which is settled on the second business day after the Declaration Day for the TAPO month

Law / Regulation

This is a summary of the contract specifications. For full contract specification details, please refer to the LME Rulebook which details the complete rules and regulations of LME contracts.

LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the Commodity Futures Trading Commission (CFTC), or firms who are permitted to solicit and accept money from foreign futures and options customers from trading on the LME pursuant to CFTC Rule 30.10.

Arbitration

In the case of unresolved disputes, arbitration is effected via the LME arbitration procedure, and/ or by other body agreed by the parties.