TAPOs contract specifications

LME Lead

Traded Average Price Options (TAPOs) are exchange traded and cleared contracts which settle financially based on the average of the daily LME Official Settlement Prices for the relevant month.

Contract code  PB 
Underlying metal  Lead of 99.97% purity (minimum)  
Lot size  25 tonnes 
Contract months  Monthly out to 15 months 
Underlying contract  LME Lead futures - the average of the cash prompts for each business day of the contract month 
Price quotation US dollars per tonne
Clearable currencies  US dollars
Option style  Asian
Trading deadlines  The business day preceding the declaration day of the relevant prompt month:
Last trading time - by 18.00
Last matching and registration - by 18.15
Expiry date/time  Automatic declaration of in-the-money TAPOs at 15.00 on the last business day of the TAPO month
Minimum price fluctuation (tick size)  $0.01 per tonne 
Strike price interval  $1
Exercise of option  LME Clear auto exercise TAPOs. Exercise will result in two futures contracts, one at the strike price and the other at the Monthly Average Settlement Price (MASP). This has the same economic effect as cash settlement two business days after the last trading day of the contract month.
Settlement type  Financial
Trading venues  Ring, inter-office telephone and LMEselect (as a delta hedged option only) 


Option exercise is a manual process.

LME Clear auto-exercise in the money options that are equal to or greater than two strikes above and two strikes below the at-the-money strike, as determined by the end of day valuation price of the relevant third Wednesday prompt of the contract month, on the evening before the first Wednesday expiry day. There is manual exercise for the remaining close-to-the-money options. Options exercise will result in a third Wednesday futures contract.

LME Lead contract specifications

This is a summary of the contract specifications. For full contract specification details, please refer to the LME Rulebook and for other information, please refer to our disclaimer page. 

Note that all contracts are subject to the LME’s rules and regulations and LME Clear span margining.