The LME published Decision Notice 26/064 (PDF) which introduces the (a) automation of the options expiry process and (b) the move of LME Options from American to European-style, as consulted in LME Notice 25/230 (PDF).
The LME and LME Clear will implement the transition to automated expiry and European-style options with a single day cut-over approach on the 21st September 2026.
Background
We announced our plans in the 25/182 LME Options Roadmap (PDF) with the primary objectives of enhancing liquidity and transparency, lowering barriers to entry and broadening participation.
We first engaged with our stakeholders in 2020 to consider potential changes and enhancements to the options market through the Options Market Discussion Paper (PDF) Guided by the feedback and combined with the successful launch of LMEselect v10, we are now working on the evolution of our options market. The Roadmap provides clarity on our areas of focus and demonstrates our commitment to enhancing the options market. In many areas consultations and further engagement will be required, and this may lead to changes to the detail of requirements or the sequencing of initiatives.
Electronic options
Our first priority is the introduction of an automated expiry process, and the move from American to European style expiry. We are aiming to deliver this as soon as possible in H2 2026, subject to consultation, regulatory engagement and broader industry engagement. In parallel, we are also working on building the electronic premium quoted functionality on LMEselect v10 so that we can launch electronic options.
The initial delivery of electronic options will focus on outright instruments with a limited number of available strikes alongside mass quotes and required market maker protections (volume over time) together with a liquidity provider programme to support onscreen liquidity. Subsequent phases will include:
• more complex strategy creation and strike listing logic
• variable tick sizes
• advanced market maker protections
• changes to the Closing Price methodology
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Contact us
For further information please email the team.Resources
25/182 Notice LME Options Roadmap (PDF)
Press release: LME sets out roadmap for modernising its options offering
Consolidated Traded Options Pricing Procedures - Update and Restatement (PDF)
Discussion Paper on Options Market Structure (PDF)
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