LME announces fee schedule and latest clearing members for LMEprecious

2 March 2017

The London Metal Exchange (LME) and LME Clear are pleased to announce a competitive fee schedule for their precious metals contracts, with nine LME clearing members having already expressed their intention to trade and clear the contracts.

The LME developed the LMEprecious fee schedule together with its partners – the World Gold Council, Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale – following discussions with a broad range of potential new users of the contracts.

“We believe that our trading and clearing fees for LMEprecious are price leading in the precious trading and clearing space, which we expect will assist in boosting liquidity in the early stages following launch,” said Kate Eged, Head of Precious Metals at the LME.

Combined trading and clearing fees for T+1 (tom), T+2 (spot) and monthly contracts executed electronically range from $0.40 to $0.90, with a 25% discount for telephone trading and further reductions for tom/next carry trades.

The LME’s five partner banks will be ready to trade and clear the LMEprecious contracts from launch. In addition, since announcing the initiative, four more members (listed here) have expressed their intention to trade and clear the contracts, which involves contributing to a separate default fund. Several more clearing members are expected to sign up prior to launch and many other precious market participants are looking to take advantage of the LMEprecious non-clearing membership (NCM) option.

“We are delighted that these four additional members have expressed their intention to trade and clear LMEprecious contracts, which can only be viewed as an encouraging sign for their future success,” said Matthew Chamberlain, LME interim CEO.

Adrian Farnham, CEO of LME Clear, commented: “We look forward to welcoming more clearing members leading up to launch, which will further facilitate client access to the contract suite.”

All aspects of the LMEprecious preparatory programme are on track, with member testing underway, and contract specifications and FAQs available to view online.

LMEprecious is set to launch on 5th June 2017, subject to regulatory approval.

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Contact details

For further information or to speak to an LME spokesperson, please contact:  

Miriam Heywood
Tel: +44 (0)207 113 8538
Email

Bianca Blake
Tel: +44 (0)207 113 8534
Email


About the London Metal Exchange

The London Metal Exchange, a member of HKEX Group, is the world centre for industrial metals trading.

The majority of global non-ferrous metals business is conducted on our three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures and options, and to hedge against adverse price movements. Prices that are discovered on our markets are used as the global reference prices.

Participants can trade aluminium, aluminium alloy, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel rebar and steel scrap, and four regional aluminium premiums contracts. In 2016, 156.5 million lots were traded on the LME, the equivalent of 3.5 billion tonnes and $10.3 trillion in notional value.

At the close of the year, approximately 3.6 million tonnes of material was held on LME warrant in more than 600 storage facilities across 34 locations internationally.