The London Metal Exchange and LME Clear have published their LME Strategic Pathway to help drive growth.
The paper, which follows a comprehensive period of engagement with the market, sets out our vision, including:
- Strategic principles: to serve the physical market, ensure fairness, increase user choice, and maximise trading efficiency
- LME to reduce fees for short- and medium-dated carries
- Financial OTC fee intended to be introduced from 2018 for dealer trades using LME prices
- Future developments will include: greater opportunities for client business; optimised initial margin methodologies and asset mobilisation; encouraging only responsible algorithmic trading.
The LME received 162 responses to its discussion paper on market structure from a broad range of users, whose feedback was instrumental to the formulation of the LME’s strategic pathway.