Introduction to the LME and hedging

This course, Introduction to the London Metal Exchange, is the definitive primer on the LME and is recommended particularly to market newcomers and as a pre-cursor to attending other modules.

What will you learn?

• become familiar with the LME’s prompt date structure and trading procedures
• gain a full understanding of the LME’s market terminology
• understand the benefits of the delivery process used by the LME
• gain an understanding of the benefits of clearing and the role of LME Clear
• learn how to access the LME through member firms and the role of a broker.

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Hedging with LME instruments, explains how to use the futures and options products offered by the exchange to manage price risk.

What will you learn?

• understand what futures and options are
• what it means for a contract to be physically settled or cash-settled, and how to use each type
• how to identify the risk position of a company
• how to reduce risk using futures and options
• differentiate between types of hedges and choose the right hedging instrument 
• what carries are, and what borrowing and lending mean
• the basics of option pricing.

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	In-person course		Virtual course
Module 1	1 day		2 x 3½ half hour sessions
Module 2	2 days		3 x 3½ half hour sessions
Full course (module 1 + module 2)	3 days		5 x 3½ half hour sessions
Typical locations/time zones	*London/Singapore		Asia/ EMEA or Americas/EMEA

*The London course includes a visit to the LME's famous open outcry trading floor, the Ring (subject to availability).

• LME’s prompt date structure and trading procedures
• LME’s market terminology
• delivery process used by the LME
• benefits of clearing and the role of LME Clear
• member firms and the role of a broker
• futures and options 
• when to use physically settled and cash-settled contracts
• risk positions
• hedging and hedging instruments
• carries, borrowing and lending.

This course will benefit your organisation by equipping it with a clear understanding of LME operations and how to use LME instruments to minimise the impact of price volatility. The inclusion of worked examples enables them to apply hedging theory within your organisation's context, resulting in a more stable financial future for your organisation.

Our introductory courses cater to individuals with minimal to no knowledge of the LME or managing metals price risk. Whether you're an existing user looking to improve your LME utilisation or a potential user seeking to understand how and why LME services can benefit your business, this course is the ideal fit for you.

Emma Jenkins

Emma has a First Class Honours degree and gold medal in Mathematics from Trinity College, Dublin, and over 20 years of banking experience.

She commenced her banking career with Goldman Sachs and initially her roles were mathematically focussed and she worked as a quantitative analyst on swaps, interest rate options and FX desks implementing pricing and risk management models for traders, salespeople and risk managers.

She became involved in commodity markets in the late 1990s when she joined Credit Suisse in Sydney as a marketer of structured gold derivative products. Shortly thereafter she transferred to the London office and was instrumental in the integration of the short-date flow and structured derivatives businesses.

At Credit Suisse, she developed her specialised commodity skills through vanilla and structured transactions on a physical and paper basis with the spectrum of participants in the metals markets, in both derivative and lending markets.

She subsequently moved to Macquarie Bank as a director specialising in precious and base metals derivatives sales. Her clients used both LME futures and OTC derivatives. She worked closely with the bank's base metals traders to determine how the bank would hedge exotic OTC derivatives with LME futures.

Areas of expertise:

• Structuring commodity derivatives strategies to mitigate price risk.
• Valuation and risk analysis of derivatives.
• Communicating complex concepts in a straight forward, clear and effective manner.