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LMEprecious

LMEprecious is the initiative created by the London Metal Exchange (LME), the World Gold Council and a group of leading industry players to introduce exchange-traded, loco London precious metals products. LME Gold and LME Silver futures provide new opportunities for trading, price discovery and risk management creating an enhanced market structure for the precious metals community.

LMEprecious was developed in response to market demand and in close consultation with key precious metals stakeholders. Offering daily and monthly futures for both gold and silver, LMEprecious delivers greater choice for market participants, modernising the gold and silver markets to better reflect the needs of global players in precious metals markets.

LMEprecious provides a real-time five-year forward curve and intra-day reference prices for the market, which can be accessed free via LMElive.


LME Gold

LME Silver

  • A highly-flexible date structure – Gold and silver can be traded on a daily basis, from T+1 (TOM), T+2 (SPOT), through to T+25. LMEprecious also offers standardised monthly futures contracts, out to five years.
  • Tradeable carries between all futures dates - Including the crucial TOM/NEXT carry trade for inventory management, and monthly roll trades for funds and other investors.
  • Displayed electronic liquidity from day one – The LME’s market-making partners deliver deep and tight executable prices across the gold and silver forward curves.
  • Loco London delivery – Gold and silver bullion physically held in London allows for the efficient settlement between LMEprecious and OTC market deliveries.
  • Optimised capital management – LMEprecious contracts are cleared by LME Clear, the LME’s custom-built metals CCP, with scope for material capital savings.
  • Flexible booking model – LMEprecious contracts can be traded electronically via LMEselect, and through the 24-hour telephone market.

 Resources:

 

LMEprecious membership and trading the contracts:

 

Pricing information:

Following the successful launch of the LMEprecious gold and silver contracts in July 2017, the LME has introduced a liquidity provider (LP) programme for price provision from 1.00-8.00 London time to support Asian hours trading. 

The LP programme is designed to work in conjunction with the existing LMEprecious price streaming programmes, which enhance participation and liquidity in the LMEprecious contracts from 8.00-18.30 London time. The Asian hours LP programme began on 1 June 2018, and will terminate on 31 May 2019.

For full details of the LMEprecious liquidity provider programmes in Asian hours, please refer to LME Notice 18/093.

For more information about the original LMEprecious market making programme, please refer to LME Notice 17/229.

LMEprecious fee schedules

 
LMEselect - gold and silver futures (per leg, per side, per lot)
Contract Type Prompt date Trading (USD)  Clearing1 (USD) Total (USD) 
House2 TOM or Spot 0.28 0.12 0.40
TOM/next or Spot/T+3 carry 0.005 0.005 0.01
Monthlies, all other dailies and quarterlies  0.35 0.15 0.50
Client TOM or Spot 0.62 0.28 0.90
TOM/next or Spot/T+3 carry  0.005  0.005  0.01
Monthlies, all other dailies and quarterlies 0.62 0.28 0.90
                                                               

 

Inter-office market - gold and silver futures (per leg, per side, per lot)
Contract Type Prompt date Trading (USD)  Clearing1 (USD) Total (USD) 
House2 TOM or Spot 0.21 0.09 0.30
TOM/next or Spot/T+3 carry 0.005 0.005 0.01
Monthlies, all other dailies and quarterlies   0.26 0.12 0.38
Give up clearer post-trade function   0.31  0.14 0.45 
All other post-trade functions3  0.03 0.02 0.05
Client TOM or Spot 0.47 0.21 0.68
TOM/next or Spot/T+3 carry  0.005  0.005  0.01
Monthlies, all other dailies and quarterlies
  0.47  0.21  0.68
All other post-trade functions3 0.03 0.02 0.05

 

LMEprecious service subscriptions4  Fees (USD)
LMEprecious General Clearing Member                                                     20,000
LMEprecious Individual Clearing Member                                                 10,000
LMEprecious Non-Clearing Member                                                          -

 

1 Clearing fees are payable to LME Clear.

2 House fees apply to the house business for all LMEprecious memberships which includes LMEprecious General Clearing Memberships (GCMs), LMEprecious Individual Clearing Membership (ICMs) and LMEprecious Non-Clearing Memberships (NCMs). House fees also apply to trading in LMEprecious Contracts undertaken by affiliates of LMEprecious clearing members (GCMs and ICMs). An “affiliate” shall mean, in relation to an entity, any subsidiary or ultimate holding company of that entity and any other subsidiary of that ultimate holding company. A company is a “subsidiary” of another company, its “holding company”, if that other company holds directly or indirectly 50% more of the voting rights in the company and / or exercises effective control over it. Affiliates of LMEprecious GCMs or ICMs wishing to benefit from House fees must contact Relationship Management at rm@lme.com to demonstrate the entity meets the definition of an affiliate as set out above.

3 Including give-up executor trades, reversal / corrections, OTC bring ons and position transfers.

4 LMEprecious subscription fees have been waived until end December 2018. 

Useful links

Contact us

For further information please email our LMEprecious team.