Modernising the market | London Metal Exchange

In September 2024 we issued a white paper which set out a package of measures designed to modernise the LME's market structure and boost transparency and price competition, at the same time as protecting the LME's unique features that serve the physical metal communities.

Having engaged widely with our stakeholders, in April 2025, we set out more detail on our next steps and longer-term roadmap, and consulted on some proposed measures. We published a decision notice with the outcomes of that consultation in August 2025.

What are we doing diagram Sept 2024

Watch: David Mears, LME Head of Trading Business Development, hosted a panel at this year's LME Asia Metal Seminar which explores the LME’s plans to deliver block trade thresholds, encourage electronic liquidity and enhance its options market.

Contact us

For further information please email us.

Current initiatives

Block trade thresholds

The LME is introducing Minimum Volume Thresholds (MVTs) also known as block trades thresholds, applicable to certain instruments.

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Crossing Rule

The LME is introducing a Crossing Rule, which will outline a Member’s ability to “cross” orders through LMEselect under certain circumstances.

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Short-dated carry

The LME intends to expand the definition of a short-dated carry to support the continued provision of liquidity and trading in daily dates.

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Tick sizes

The LME has revised its tick sizes for certain spread instruments.

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When exactly is Phase 1 and Phase 2?
Phase 1 is from 2025 to the first half of 2026, while for the second phase we will consider further changes in the second half of 2026. We have already introduced TAS contracts as part of Phase 1 and intend to introduce crossing and blocks in February 2026 and March 2026 respectively.

Are there any changes to implied pricing?
The LME will be considering the delivery of implied pricing changes in Phase 2.

Are we progressing with the market data transparency in the inter-office market?
The LME will be considering this in Phase 2.

Are we progressing with the OTC transparency?
The LME will be considering this in Phase 2.

Are we progressing with the market data fees for OTC platforms?
The LME will be considering this in Phase 2.

Are we progressing with the Large-in-Scale deferral?
The LME will be considering this in Phase 2.

Are we progressing with the UOTR enhancements?
The LME will be considering this in Phase 2.

Client Guide to Executing Under the MVT Rule (PDF)

26/109 Market Structure Modernisation Delivery Update (PDF)

25/149 Consultation Decision Notice on Enhancing Liquidity (PDF)

Press release: LME progresses plans for market structure modernisation

LME Liquid Instruments and Minimum Volume Thresholds (PDF)

Redline of amendments to the LME Rulebook (PDF)

Blocks Guidance (PDF)

Examples to Support the Blocks Guidance (PDF)

Crossing Guidance (PDF)

25/150 Financial OTC Booking Fee Changes (PDF)

Redline of amendments to the Financial OTC Booking Fee Policy (PDF)

Adhering to Block Rules Post-Trade Monitoring (PDF)

LME Update on Enhancing Liquidity (PDF)

Press release: LME moves ahead with plans to modernise market structure to enhance liquidity

25/083 Consultation on Enhancing Liquidity (PDF)

LME Liquid Instruments and Minimum Volume Thresholds (draft) (PDF)

Redline of proposed amendments to the LME Rulebook (PDF)

Blocks Guidance (v1.2) (PDF)

Examples to Support the Blocks Guidance (PDF)

Crossing Guidance (draft) (PDF)

LME Update on Enhancing Liquidity Overview (PDF)

Enhancing liquidity on the LME: video

This animation provides an overview of the aims and desired outcomes of the LME’s market structure modernisation plans.

Webinar: Enhancing Liquidity White Paper

LME CEO Matthew Chamberlain, LME COO and Head of Trading Jamie Turner, and LME Board Director Nigel Dentoom provide more detail on the White Paper in our webinar.

Documents

LME White Paper on Enhancing Liquidity (PDF)

LME White Paper: Letter from the LME CEO

Press release: LME progresses market structure evolution to enhance liquidity

Member Notice 24/240 (PDF)

LME White Paper overview (PDF)

In 19 January 2021, we issued the LME Discussion Paper on Market Structure, which set out a range of proposals designed to enable the LME to modernise and adapt to emerging trends and evolving customer needs to create a metals market fit for the future.

Built on the groundwork of 2017’s Strategic Pathway this discussion paper considered several structural changes to the LME.

In June 2021 we published a summary of the broad market feedback we received, together with the outcomes of the discussion paper process.

Response and outcome documents

LME Notice: Outcomes of Discussion Paper on Market Structure (PDF)

Appendix 1: Response Paper (PDF)

Appendix 2: Closing Price Blueprint (PDF)

LME Market Structure Evolution: Summary (PDF)

LME Press Release – LME announces outcomes of Discussion Paper on Market Structure (PDF)

Overview presentation: LME Discussion Paper on Market Structure: Feedback and Outcomes (PDF)

Discussion paper documents: Issued January 2021

LME Press Release – LME issues discussion paper on future market structure

LME Discussion Paper on Market Structure 2021 (PDF)

LME Discussion Paper on Market Structure 2021 – Overview (PDF)

LME Discussion Paper on Market Structure 2021 – Additional data (issued March 2021) (PDF)

Member notices

21 153 Decision notice on proposals relating to the determination of Official Prices (PDF)

LME Consultation: 21 112 Proposals relating to the determination of Official Prices and associated LME Rulebook amendments (PDF)

21 011 Discussion Paper on Market Structure (PDF)

Press releases

LME issues discussion paper on future market structure

LME announces introduction of financial OTC booking fee and enhanced trading regulations

LME consults on financial OTC booking fee and enhanced trading regulations in support of market fairness

Published in September 2017, the Strategic Pathway set out our vision to drive growth, following a comprehensive period of engagement with the market.

The Strategic Pathway is underpinned by four key principles:

serving the physical market by providing pricing, risk management and terminal market services to the global physical metals industry
ensuring fairness and non-discriminatory access to our market
increasing user choice and meeting the varied needs of all the LME’s users
maximising trading efficiency for customers

Following the 2017 discussion paper and taking into account market feedback, the LME implemented:

2017: carry-fee reductions; tick size review
H1 2018: Financial OTC Booking Fee introduction; introducing broker membership; B share initiatives; optional T2 booking model
H2 2018: new product launches; implied pricing; TAS functionality
2019: enhancements to clearing services and electronic trading platform

LME Strategic Pathway (PDF)

LME Strategic Pathway: Summary (PDF)

Discussion Paper on Market Structure 2017: Feedback Summary (PDF)

LME Strategic Pathway infographics

LME Strategic Pathway video

Financial OTC Booking Fee

Financial OTC Booking Fee Quick Guide (PDF)