Whether you are an industrial hedger, physical market trader or proprietary trader there are two ways of accessing our markets.
The decision as to which route to choose will be determined by a number of factors including what level of access you require, whether your firm is trading for its own book and / or executing on behalf of clients, what your regulatory permissions are and what your capital requirements might be.
A large number of participants access our markets as clients of LME members. Non-members wishing to trade LME contracts can do so through Category 1, 2 and 4 members (and their associated ISVs) with each category offering different levels of services in respect of trading and clearing. Category 1, 2 and 4 members can offer clearing services to clients; Category 4 members are not members of the LME’s clearing house, LME Clear, and will use the services of a Category 1 or 2 member to clear their trades.
To become a member of the LME, candidates should contact Client Advisory and Membership Services in the first instance to discuss their requirements. There are various on-boarding stages, which can run concurrently, and include application completion/due diligence, connectivity and operational readiness.
There are seven categories of membership each with different capabilities: