|
Click here to download a PDF version of LMEmini contract specification
A monthly, cash settled contract, traded on LME Select and the telephone market, designed to appeal to market participants who do not wish to trade contracts for delivery on a daily prompt basis and those who wish to trade in smaller tonnages than currently available on-exchange.
a) Copper Grade A, Primary Aluminium and Special High Grade Zinc LMEmini contracts are tradable from December 4th 2006.
b) Contracts are cash settled. No physical delivery.
c) Exchange contracts cleared by LCH.Clearnet (LCH).
d) Monthly contract with Third Wednesday prompt out to 12 months.
Arbitration
In case of un-resolvable disputes, arbitration will be effected via LME arbitration procedures.
Law / Regulation
English Law, with regulation by LME and FSA.
Trading Features
|
Trading platform |
LME Select and the telephone market. |
|
Trading hours |
LME Select open hours. Currently 01.00-19.00 London time on UK banking days. Telephone market: 24 hours |
|
Currency and quotation basis |
US Dollars and cents only. |
|
Months tradable on launch |
LMEmini contracts tradable from launch are December 2006 up to and including October 2007. |
|
Contract size |
5 tonnes |
|
Last trading time |
12.30pm for all metals on the cash prompt for the Third Wednesday of the month. This is normally the Monday before the Third Wednesday. If the Monday is a UK holiday it will be the previous LME open day. |
|
Official prices |
No official prices are established for LMEmini contracts. |
|
Outright contracts tradable |
One Third Wednesday prompt contract per month forward for 12 months. |
|
Carry contracts tradable |
Month to month carry contracts traded in contango and backwardation. Carry contracts are set up as tailor made carries and are broken down into outright contracts for clearing purposes. No yearly, quarterly or half yearly average price contracts on initial launch. |
|
Tick size for outright contracts |
$0.25 |
|
Tick size for carry contracts |
$0.01 for all carry contracts. |
|
Closing prices |
The closing price for the relevant parent metal prompt as at current trading floor closing time is used and not the last trade, bid or offer on the LMEmini contract. |
Clearing and Settlement
|
Final settlement price |
The settlement price for expiring contracts is the parent contract LME official settlement price (cash sellers) established on the cash day for the Third Wednesday prompt of the expiring month. |
|
Marked to market |
All LMEmini future positions are ‘marked to market' each evening against the closing price. This will result in realised profit and loss postings for value the next day being generated for the LCH.Clearnet banking system.
All positions remain open until expiry. Therefore all bought and sold positions are carried forward at the closing price until expiry. |
|
LCH.Clearnet initial margin |
Initial margin calculations are based on the net of the open bought and sold positions. |
|
