Benchmark Regulation

The London Metal Exchange is authorised and regulated by the Financial Conduct Authority in respect of its benchmark administration activities under the European Benchmarks Regulation (Regulation No (EU) 2016/1011) as “onshored” into UK law and amended by The Benchmarks (Amendment and Transitional Provision)(EU Exit) Regulations 2019 (UK BMR). The London Metal Exchange is also a recognised investment exchange under Part XVIII of the Financial Services and Markets Act 2000 (FSMA) and a regulated market pursuant to the Markets in Financial Instruments Directive. The LME is an exempt person for the purposes of FSMA in respect of its exchange activities.

LME’s UK BMR Statement of Compliance.

The LME, in its capacity as a benchmark administrator and in accordance with Article 29 of the UK BMR is listed on the FCA Benchmark Register, permitting use of the LME's Benchmarks in the United Kingdom.

As a third-country benchmark administrator, the LME is utilising the transitional arrangements under Article 51(2) of the European Benchmarks Regulation as amended and extended from time to time in order to continue providing its benchmarks for use by supervised entities in the European Union.



LME benchmarks

A full list of the LME’s prices, including information on which of these prices are benchmarks under the UK BMR, is included in the LME List of Benchmarks. Links to the benchmark statement and benchmark methodology for each LME Benchmark Family can also be found in this document. Benchmark statements and methodologies should be read in conjunction with the Benchmark Administration - Definitions.

The LME’s benchmarks are categorised as non-critical commodity benchmarks that are subject to Annex II of the UK BMR.

The LME’s view is that market participants who trade on the LME’s execution venues are not “contributors” of input data within the meaning of the UK BMR and consequently, are not subject to a code of conduct. However, supervised entities are reminded that their usage of an LME benchmark may trigger other obligations under the UK BMR.

LME prices not identified as a benchmark under the UK BMR may not be used as benchmarks.

All use of LME prices is subject to applicable licensing requirements. Further information is available on the Market Data Licensing page.



COVID-19 update in relation to Official Prices and Closing Prices

Links to the benchmark methodologies for the Official Prices and Closing Prices are set out in the LME List of Benchmarks referred to above. Both the Official Prices and the Closing Prices are typically determined by reference to trading activity that takes place in the Ring. The LME enacted its BC pandemic plan in early 2020 in response to the outbreak of COVID-19. As set out on the LME’s COVID-19 preparedness webpage and as per LME Notice 20/073, the LME’s temporary move to electronic pricing commenced on Monday 23 March 2020. During this period where the Ring is unavailable, the Official Prices and Closing Prices will be determined on the basis of LMEselect activity. Further detail on the electronic methodology used during periods of BC has been published separately.



BENCHMARK CHANGE & CESSATION

The LME may, from time to time, seek to make changes to or consider cessation of a Benchmark. In these circumstances, the following procedures shall apply:



Benchmark consultations

There are currently no benchmark consultations. Historic consultations are available here.



Complaints

For all LME benchmarks other than the LBMA Platinum and LBMA Palladium Prices, the Complaints Procedure is available here.

The LBMA Platinum and LBMA Palladium Prices complaints procedure is set out in Schedule 7 of the LBMA Platinum and LBMA Palladium Prices Regulations.



Contact

We welcome engagement from all those with interest in our market. Please direct any enquiries via email or your usual LME contact.



Disclaimer

All information provided on this page is for information only. Every effort has been made to ensure that all information on this page is accurate, but the LME accepts no responsibility or liability, and its affiliates, directors, officers, employees, partners or licensors also accept no responsibility or liability, for any errors or for any loss from use of this publication or any of the information or data set out on this page. Neither the LME, its affiliates, nor any of its affiliates, directors, officers, employees, partners or licensors, make any claim, prediction, warranty or representation whatsoever, expressly or implied, either as to the results to be obtained from the use of the LME’s benchmarks or the fitness or suitability of the LME benchmarks for any particular purpose. The LME, its affiliates, nor any of their directors, officers, employees, partners or licensors, accept any liability (to the extent permissible under law) for any person’s use of the LME’s prices as a benchmark contrary to article 29(1) of the BMR or under any applicable legislation enforceable in any jurisdiction which seeks to implement or otherwise enforce the prohibition set out in article 29(1) of the BMR.