Since 2016 the LME has operated a deferral regime for the publication of Large In Scale (“LIS”) options transactions to allow market participants time to manage their risk, and support liquidity in LME options.
This regime has been revised as part of the LME’s programme to ensure MiFID II compliance, with both pre-trade transparency waiver and post-trade deferral of publication having received regulatory approval.
As of 3 January 2018, LIS options executed on the inter-office venue are not subject to pre-trade transparency obligations and trade publication is delayed until 7pm (London time) on the day after the trade (T+1), at which time the LIS options trades will be published via the normal market data channels. Trades on LMEselect are published in real time irrespective of their size.
LIS options trades are transactions in either options, or Traded Average Price Options (TAPOS), which are greater than, or equal to the following sizes:
| Metal | LIS threshold (transaction must be equal or greater than) |
|---|---|
| Aluminium | 1,000 lots |
| Aluminium Alloy | 500 lots |
| Copper | 500 lots |
| Lead | 500 lots |
| NASAAC | 500 lots |
| Nickel | 500 lots |
| Tin | 100 lots |
| Zinc | 500 lots |
Further details can be found in member notice: 17/395 Waiver of Pre-Trade and Deferral of Post-Trade Transparency Req's for certain Traded Options (PDF).
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