Hedge against the monthly average, in one simple trade
LMEswaps are designed specifically for members of the metal community who need to hedge against the monthly average price. They are the first of their type in the world to be traded on-exchange and available for all LME non-ferrous metals.
Tradable on LMEselect and the 24-hour telephone market, LMEswaps enable participants to enter into a fixed price and settle the difference against the floating price (the Monthly Average Settlement Price or MASP) at the end of the averaging period – all in one simple trade.
LMEswaps are traded on-exchange, so pre- and post-trade prices are transparent and trading is regulated. Participants also benefit from the counterparty protection associated with contracts traded on-exchange – namely default protection and member-to-member counterparty risk elimination via LCH.Clearnet.