Introduction to the LME and Hedging

This course, Introduction to the London Metal Exchange, is the definitive primer on the LME and is recommended particularly to market newcomers and as a pre-cursor to attending other modules.

What will you learn?

• Become familiar with the LME’s prompt date structure and trading procedures
• Gain a full understanding of the LME’s market terminology
• Understand the benefits of the delivery process used by the LME Gain an understanding of the benefits of clearing and the role of LME Clear
• Learn how to access the LME through member firms and the role of a broker

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Hedging with LME Instruments, explains how to use the futures and options products offered by the exchange to manage price risk.

What will you learn?

• Understand what futures and options are
• What it means for a contract to be physically settled or cash-settled, and how to use each type
• How to identify the risk position of a company
• How to reduce risk using futures and options
• Differentiate between types of hedges and choose the right hedging instrument 
• What carries are, and what borrowing and lending mean
• Basics of option pricing

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	In-person course		Virtual course
Module 1	1 day		2 x 3½ half hour sessions
Module 2	2 days		3 x 3½ half hour sessions
Full course (module 1 + module 2)	3 days		5 x 3½ half hour sessions
Typical locations/time zones	*London/Singapore		Asia/ EMEA or Americas/EMEA

*The London course includes a visit to the LME's famous open outcry trading floor, the Ring (subject to availability).

• LME’s prompt date structure and trading procedures
• LME’s market terminology
• Delivery process used by the LME
• Benefits of clearing and the role of LME Clear
• Member firms and the role of a broker
• Futures and options 
• When to use physically settled and cash-settled contracts
• Risk positions
• Hedging and hedging instruments
• Carries, borrowing and lending

This course will benefit your organisation by equipping it with a clear understanding of LME operations and how to use LME instruments to minimise the impact of price volatility. The inclusion of worked examples enables them to apply hedging theory within your organisation's context, resulting in a more stable financial future for your organisation.

Our introductory courses cater to individuals with minimal to no knowledge of the LME or managing metals price risk. Whether you're an existing user looking to improve your LME utilisation or a potential user seeking to understand how and why LME services can benefit your business, this course is the ideal fit for you.

Emma Jenkins has many years’ experience covering commodity markets, derivative pricing and structuring, and loan origination. After graduating from Trinity College, Dublin, with a BSc Hons, a gold medal and Foundation Scholarship in Mathematics, she commenced her banking career in the Goldman Sachs graduate program. After this, she joined Westpac Banking Corporation, designing and implementing derivative pricing models for the interest rate and FX trading desks. She moved into the commodity arena when she joined Credit Suisse to market precious metals derivatives. She later joined Macquarie Bank as a specialist commodity director, where she provided a complete banking service to clients in the base and precious metals, and oil and gas sectors. She spent several years as a partner in consulting business, advising clients on commodity price risk management and providing expert witness services. Emma has worked with a diverse range of clients, from central banks and regulators, large miners, traders and manufacturers, wealth managers, through to small import/export businesses. Her insights into the issues facing the many market participants coupled with her passion for advancing understanding has established her as a respected trainer in commodity markets.