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Customers who would like to receive LME data for the purpose of manipulating or combining it with other data in order to create derived information or a derived product may be subject to a derived data licence.

Who is the derived data licence for?

The derived data licence is for firms who create derived information or derived products using LME as a constituent. 

How much does the derived data licence cost?

Fees vary depending on the particular use case and category of derived data usage. You can get more information once you register on the LME online licensing portal.

How do I apply for a derived data licence?

To apply for a derived data licence, you need to register on the LME online licensing portal.

 

Derived data licence categories

The LME has six categories for derived data creation and distribution.

Indices

Portfolio of holdings representative of an underlying market segment where the price is calculated from underlying index constituents. The LME index licence is for firms who create the index products and includes authorisation of an independent third-party calculation agent.

Market Data Licence Agreement – Derived Data - Indices (PDF)

Register and apply for a licence on the LME online licensing portal

Exchange traded products

Creation of ETPs such as exchange traded funds, commodities and notes. The LME exchange traded products licence is for firms who use LME data to create, market and design the underlying strategy for ETPs, ETCs, ETFs and ETNs.

Market Data Licence Agreement – Derived Data – Exchange Traded Products (PDF)

Register and apply for a licence on the LME online licensing portal

Certificates and warrants

Certificates

Creation of a securitised derivative offered on commercial paper and which provides exposure to any underlying assets that may form the investment strategy; such financial instruments, which will enable participation in the movement of the underlying assets, and contribute in part, or in whole, to the price of the product.

Warrants

Creation of a structured financial product offered as a securitised derivative and which grants the holder the right, but not the obligation, to purchase or sell a pre-determined quantity of an underlying asset at a specified price within a pre-defined timeframe or upon expiration.

The LME certificates and warrants licence is for firms to create a certificate and/or warrant.

Market Data Licence Agreement – Derived Data – Certificates and Warrants (PDF)

Register and apply for a licence on the LME online licensing portal

Leveraged products

The LME leveraged products license is for firms who use LME data to create products including, but not limited to, contracts for difference (CFDs), spread bets and binary options. Additional permissions are available for the distribution of these products to API and white label clients.

Market Data Licence Agreement – Derived Data – Leveraged Products (PDF)

Register and apply for a licence on the LME online licensing portal

Reference values

Creation of a price wherein data has been altered or otherwise manipulated to create an output for the purposes of facilitating, supporting, or enabling functions that may include, but are not limited to, trading, risk management services, market analysis or benchmarking, irrespective of direct or indirect linkage to a tradable financial product. The LME reference values licence is for firms creating reference data.

Market Data Licence Agreement – Derived Data – Reference Values (PDF)

Register and apply for a licence on the LME online licensing portal

Vendors of research and analytics

Creation of a derived price or value to be distributed as analytics, customisable metrics and/or research publications. This can include and is not limited to, artificial intelligence, price forecasting, risk management and pre and post trade services. The LME vendors of research and analytics licence is for firms creating pricing for analytics platforms and published material.

Market Data Licence Agreement – Derived Data – Vendors of Research and Analytics (PDF)

Register and apply for a licence on the LME online licensing portal

Additional queries

For any additional queries regarding derived data, please email us.

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