Loading

Options discussion paper

Nickel

The London Metal Exchange (LME) issued a market-wide discussion paper on plans to simplify and standardise some areas of its options market structure in order to support the development of its electronic options market.

After receiving and assessing feedback, we published a response paper laying out how the LME believes it is best to proceed in various areas of development.

  • the options expiry process
  • the closing-price process
  • large-in-scale reporting delays
  • block rules

We also outline views on broader topics such as liquidity provider programmes, strike rules, and tick size changes, as well as on the potential introduction of new options contracts.

In order to broaden participation in its electronic options market, the LME proposes to move from a “volatility quoted format” to a “premium quoted format” – both in order to be aligned to the industry standard and to offer an increased level of transparency.

The plans follow extensive engagement with the Traded Options Committee and are in response to market demand.

Discussion Paper on Options Market Structure

Response Paper on Options Market Structure

Contact us

For further information please email the team.

Contact us


Resources

Consolidated Traded Options Pricing Procedures - Update and Restatement

Stay up to date

Register with LME.com

Receive full access to all our price data and gain access to our monthly LME newsletter, packed with market tips and insights from our on-staff specialists.