With effect from 3 December 2019, the London Metal Exchange will be authorised and regulated by the Financial Conduct Authority in respect of its benchmark administration activities under the European Benchmarks Regulation (Regulation No (EU) 2016/1011) (BMR). The London Metal Exchange is also a recognised investment exchange under Part XVIII of the Financial Services and Markets Act 2000 (FSMA) and a regulated market pursuant to the Markets in Financial Instruments Directive. The LME is an exempt person for the purposes of FSMA in respect of its exchange activities.
In its benchmark administration capacity the LME will be listed on ESMA’s register, which can be found here.
A full list of the LME’s prices, including information on which of these prices are benchmarks under the BMR, is available here. Links to the benchmark statement and benchmark methodology for each LME benchmark can also be found in this document. Benchmark statements and methodologies should be read in conjunction with the benchmark administration - definitions.
The LME’s benchmarks are categorised as non-critical commodity benchmarks that are subject to Annex II of the BMR.
The LME’s view is that market participants who trade on the LME’s execution venues are not “contributors” of input data within the meaning of the BMR and consequently, are not subject to a BMR code of conduct. However, supervised entities are reminded that their usage of an LME benchmark may trigger other obligations under the BMR.
LME prices not identified as a benchmark under the BMR may not be used for BMR purposes.
All use of LME prices is subject to applicable licensing requirements. Further information is available on the Market Data Licensing page.
Links to the benchmark methodologies for the Official Prices and Closing Prices are set out in the list of LME’s prices referred to above. Both the Official Prices and the Closing Prices are typically determined by reference to trading activity that takes place in the Ring. The LME enacted its BC pandemic plan in early 2020 in response to the outbreak of COVID-19. As set out on the LME’s COVID-19 preparedness website, the LME anticipates that it will temporarily move to fully electronic pricing on Monday 23 March 2020. During this period, the benchmark methodologies for the Official Prices and Closing Prices will continue to apply, with the LME relying in particular on its ability to calculate Official Prices and Closing Prices on the basis of LMEselect activity where the Ring is unavailable. Further detail on the electronic methodology has been published separately in LME Notice 20/069.
There are currently no benchmark consultations. Historic consultations are available here.
Benchmark-related consultations are subject to the following procedures:
For all LME benchmarks other than the LBMA Platinum and LBMA Palladium Prices, the Complaints Procedure is available here.
The LBMA Platinum and LBMA Palladium Prices complaints procedure is set out in Schedule 7 of the LBMA Platinum and LBMA Palladium Prices Regulations.
We welcome engagement from all those with interest in our market. Please direct any enquiries via email or your usual LME contact.
All information provided on this page is for information only. Every effort has been made to ensure that all information on this page is accurate, but the LME accepts no responsibility or liability, and its affiliates, directors, officers, employees, partners or licensors also accept no responsibility or liability, for any errors or for any loss from use of this publication or any of the information or data set out on this page. Neither the LME, its affiliates, nor any of its affiliates, directors, officers, employees, partners or licensors, make any claim, prediction, warranty or representation whatsoever, expressly or implied, either as to the results to be obtained from the use of the LME’s benchmarks or the fitness or suitability of the LME benchmarks for any particular purpose. The LME, its affiliates, nor any of their directors, officers, employees, partners or licensors, accept any liability (to the extent permissible under law) for any person’s use of the LME’s prices as a benchmark contrary to article 29(1) of the BMR or under any applicable legislation enforceable in any jurisdiction which seeks to implement or otherwise enforce the prohibition set out in article 29(1) of the BMR.