LMEprecious

LMEprecious is the new 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.

Key features

• 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.