Incentive Programmes

The London Metal Exchange (LME) runs a number of incentive programmes designed to encourage trading and enhance liquidity for both new and existing participants on our markets.

The current suite of programmes provide participants with a mix of fee rebates depending on time in the market and volume traded.

The New Market Participant (NMP) programme is for proprietary firms who have never traded the LME before. We have also added two new programmes: the Continuing Market Participant (CMP) programme, for those no longer on the NMP, and the Volume Based Rebate (VBR) initiative - for any proprietary firms who trade over 5000 lots a month.

Full details of the incentive programmes are contained within LME Notice 18/330 'Restructure of incentive programmes'



Base


New Market Participant programme (NMP)

The New Market Participant programme (NMP) will be a one year programme for proprietary trading participants who have not traded LME contracts previously. It will offer eligible participants a rebate of a set percentage of trading and clearing fees for electronic trades in outright contracts.

Rebates offered:

  • 75% for the initial six months of the programme
  • 50% for the final six months of the programme

Application documentation

Continuing Market Participant programme (CMP)

The Continuing Market Participant programme is a one year programme open only to proprietary trading participants who have previously been on an LME New Markets Participants (NMP) programme - either the current NMP programme or new NMP programme. Each participant may be on the CMP for a total of one year.

Rebate offered:

  • 50% for 12 months

Application documenation

Volume Based Rebate programme (VBR)

The Volume Based Rebate programme (VBR) will be a one year programme and is open to all proprietary trading participants. Participants may re-apply for the VBR programme on an annual basis. There is no limit on the length of time a participant can be on the VBR programme.

Rebate offered:

  • 50% of trading and clearing fees for all volume of excess in all contracts including outrights and carries, but excluding short dated carries.

Application documenation

Precious


LMEprecious New Market Participant

The LMEprecious NMP is a one year programme for trading participants who have not traded LMEprecious Contracts previously. It offers eligible participants a rebate of a set percentage of trading and clearing fees across all contracts.

Rebates offered:

  • 75% for the initial six months of the programme
  • 50% for the final six months of the programme

Application documentation

LME incentive programmes are governed by the Incentive Programme General Terms (PDF).

To apply for an incentive programme, completed application forms should be submitted via email to incentive.programmes@lme.com

If you have any questions, please contact sales@lme.com.

Upon the LME’s acceptance of a participant onto an incentive programme, the combination of the General Terms, relevant specification document, and the application form will together form the agreement between the LME and relevant Member in respect of the participant’s participation in the incentive programme.