“LMEswaps introduce a new kind of contract to the market, which responds to the needs of the physical industry”, said Chris Evans, Head of Business Development at the LME. “For the first time, LMEswap users will benefit from a regulated market with the same counterparty default risk protection offered by other LME contracts.”

Tradable on LMEselect and the 24-hour telephone market, LMEswaps enable physical market 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.

~Ends~

For further information or to speak to an LME spokesperson, please contact:

Miriam Heywood
Press Officer
t +44 (0)207 264 5538
e miriam.heywood@lme.com

Related content:

• LMEswaps

About the London Metal Exchange

The London Metal Exchange is the world's premier base metals market. It aims to set the global standard for price risk management in metals and provide tools including futures and options contracts for aluminium, copper, tin, nickel, zinc, lead, aluminium alloy and NASAAC, steel billet and the minor metals - cobalt and molybdenum. In 2010, 120.3 million lots were traded at the LME, while the total value of trading on the Exchange was $11.63 trillion. At the close of the year 5.7m tonnes of material were held on LME warrant in 709 storage facilities across 39 locations internationally. http://www.lme.com/