LME Aluminium Premiums - incentive programmes and fees

The new aluminium premium contracts are:

  • LME Aluminium US Premium
  • LME Aluminium West-Europe Premium
  • LME Aluminium East-Asia Premium
  • LME Aluminium South-East Asia Premium

Equivalence programme with primary aluminium contracts

Until the aluminium queues in all of the LME-approved warehouses reduce to 50 days or less (as per the Linked Load-In/Load-Out Rule), the LME will operate an equivalence programme, where any market participant trading LME primary aluminium contracts will also be able to trade aluminium premium contracts without incurring any trading or clearing fees on those premium contract trades.

When the queues have reduced to 50 days, the LME will notify the market via a Market Notice, and confirm the date on which the equivalence programme will cease and the regular fee schedule (see Market Maker programme tab) will start to apply.

Market Maker programme

To support the launch of our aluminium premium contracts, we are introducing a market making programme, designed to provide initial liquidity and encourage trading in the new contracts.

All interested parties are eligible to bid to become a market maker in one, two, three or four of the premium contracts and we encourage applicants to as act market makers in respect of all four contracts. 

The market making programme is available for LME members, professional market making firms and physical aluminium traders. 

Please contact the LME Sales Team if you are interested in market making for the premium contracts. 

Fee schedule

The following fee schedule will apply for the premium contracts after the aluminium queues in LME-approved warehouses have been reduced to 50 days or less, at which point the equivalence programme (see Market Maker programme tab) will end.

Contract type Category  Trading (USD)  Clearing (USD)  Total (USD)
Exchange Ring/Kerb/Basis 0.25 0.25 0.50
Non-Ring 0.65 0.25 0.90
Give-up 0.25 0.25 0.50
Client Short dated carries n.a. n.a. n.a.
All other 0.65 0.25 0.90
Option exercise/assignment n.a. n.a. n.a.
Cash settlement fee n.a. n.a. n.a.
Delivery fee - 0.35 0.35