The Monthly Moving Average Price (MMAP) is the moving average price for the current LMEswap month based on known LME Official Cash Settlement Prices to date. At the end of the last business day of the current LMEswap month, the MMAP will be the same as the MASP.
The Month Average Settlement Price (MASP) is the average of all the daily LME Official Cash Settlement Prices in any given month. In the case of Monthly Average Futures, the difference between the agreed fixed price and the unknown floating price (which becomes the MASP), is settled financially.
Anyone who prices their physical deals basis the Monthly Average Settlement Price (MASP) and wants to hedge their price risk – especially those whose hedging departments only allow use of on-exchange products.
The Notional Average Price (NAP) is the closing price for forward LMEswap months published at the end of each day. The NAP is made up of known LME Official Cash Settlement prices and LME Closing Prices taken from each of the prompt dates for the pricing period.
On-exchange Monthly Average Futures enjoy more transparent and standardised pricing, are cleared member to member by LME Clear and offer extra default protection and regulation under LME rules
Visit our Monthly Average Futures page for a full explanation of Monthly Average Futures pricing.
Initial margins are the same as LME futures contracts. Contingent variation margin is applied using the Notional Average Price (NAP)
Any producers and consumers who price their physical negotiations basis the LME Monthly Average Settlement Price (MASP) can use Monthly Average Futures to accurately hedge their physical price risk in just one trade - all in a safe, regulated, transparent and protected environment.
Monthly Average Futures can be traded via the telephone on our 24-hour market or electronically via LMEselect - like all LME contracts you have to be a member or a client of a member to trade Monthly Average Futures.