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Simple
LMEminis are cash-settled contracts, traded electronically and via the telephone. They are designed to appeal to market participants who prefer to trade non-physically deliverable contracts, on a monthly basis, in smaller tonnages than currently available on the LME.
Accessible
LMEminis appeal to those market participants looking for an easy way to trade and access the world’s most liquid base metals market.
Transparent
Through the LME Select API, full order depth for all contracts and months are visible giving market participants full transparency of the market at all times. Additionally, LMEmini market data will be published by LME licensed market data vendors. A full list of LME licensed data vendors can be viewed here.
Liquid and credible
Being cash-settled market participants also benefit from the deep liquidity and credibility that exists in the LME’s parent contracts.
Contract summary
- Smaller lot sizes, with the underlying specification identical to the full-size parent contract
- Contracts are for Copper Grade A, Primary Aluminium and Special High Grade Zinc
- Tradable electronically via LME Select and the telephone market
- Tradable for one prompt date (Third Wednesday of the month) per month for 12 months forward
- Cash-settled (i.e. no physical delivery) against the Official Settlement Price of the full-size parent LME contract
- Margining will be on a daily marked-to-market basis
Solid foundations
LMEminis are cash-settled against the Exchange’s parent contracts, many of which have been established for almost a century.
The Exchange’s parent copper and aluminium contracts, for example, are its most liquid, and represent the greatest proportion of volume on the Exchange.
Copper has been traded on the Exchange since its inception and today trades around 20 million lots annually, which equates to almost $1,100 billion.
Launched in 1978, Primary Aluminium is a relatively recent arrival on the Exchange but has quickly grown to become the LME’s largest volume contract at over 30 million lots per year, with an equivalent monetary value of around $2,000 billion.
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