Electronic trading on the LME

Over the past couple of years we have implemented a series of initiatives, as well as updates to our electronic trading platform (LMEselect) designed to provide:

  • Enhanced liquidity
  • Simpler trading
  • Tighter spreads
  • Improved price transparency along the curve
  • Greater market access.

The initiatives that facilitate electronic trading on the LME include:

New release of LMEselect - The upgrade of LMEselect 9.0 went live on 27 March 2017 and provides greater performance and capacity for electronic traders, and introduces dynamic price limits across all prompts and carries.

Membership enhancements - Category 3 and 4 members now have direct access to LMEselect, alongside the introduction of additional flexibility in admission criteria for all membership categories. These changes are designed to facilitate greater market access and participation.

Electronic Trader Programme - Our Electronic Trader Programme was introduced on 1 June 2016, reducing fees to $0.90 for all registered clients of members trading outright 3rd Wednesdays, and 3 months to and from 3rd Wednesdays.

Liquidity Provider Programme (LP) - The LP incentive programme is aimed at existing traders who will receive volume-based rebates of clearing and trading fees.

New Market Participant Programme (NMP) -  This programme offers rebates for new participants who have not traded the market before,increase liquidity and trading on LMEselect.

 

  • Revision of Error Trade Policy
    We amended the LME's error trade policy to give the LME the scope to adjust prices in error trades.
  • Optimised LMEselect tick sizes
    In January 2015 we increased LMEselect tick sizes to match our open outcry platform, the Ring.
  • 50-1 order-to-trade ratio restriction lifted
    We lifted the LMEselect 50-1 order-to-trade ratio restriction on outright 3rd Wednesdays. It covers aluminium, copper and zinc out to six months and promotes more liquidity for near-by monthly contracts.
  • Pre-trade risk management (PTRM)
    As part of LMEselect 7.4 upgrade in April 2015 we have introduced new pre-trade risk management functionality. Facilitating safe onboarding of new customers and a more secure market for all. 
  • Trade compression
    The clearing house for the LME, LME Clear, launched their post trade compression service. Greater capital efficiency.
  • Data services
    In 2014 we gave latency-sensitive member clients direct access to data from LMEselect.

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For more information please contact our team.