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In the first instance, prospective users of the market should contact an LME member firm to talk through their requirements (see http://www.lme.com/membership.asp for a full list of LME trading members).
The choice of broker will entirely depend on the services required and the desired level of interaction with the market. Once an LME member has been selected, a trading account will need to be opened with that company before trading can start. The LME member will then run a number of regulatory checks required by the FSA, before trading can begin. LME member firms are very familiar with the process of opening new client accounts and will guide any prospective users smoothly through the various processes.
Membership categories are broadly divided between broker members and trade members, and the criteria required for an applicant company to be approved varies according to the category.
Broker members are those companies allowed to issue LME contracts – effectively buying and selling material on behalf of their customers.
Trade members are typically industrial or financial companies, with an interest in the metals or plastics industries, who primarily seek LME membership in order to be kept informed of the strategic development of the Exchange. They cannot issue LME contracts; if they wish to trade, they must do so through a broker member or a subsidiary or agent acting on behalf of a broker member.
If you have any questions about the LME's plastics price risk management tools please email info.plastics@lme.com or contact the LME marketing department on +44 (0) 207 264 5555.
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