The London Metal Exchange (LME) currently offers three incentives programmes for base metals.
Liquidity On Orderbook Programme (LOOP)
The Liquidity On Orderbook Programme (“LOOP”) is designed to promote liquidity additive behaviour on LMEselect in monthly contracts (3rd Wednesday). LOOP supports liquidity in monthly contracts via implied pricing from specified 3-month to monthly spreads (carries), monthly to monthly calendar spreads and outright monthly contracts.
Liquidity On Orderbook Programme - Specification (PDF)
Liquidity On Orderbook Programme - Application (PDF)
Liquidity On Orderbook Programme - Application support (Excel)
26 067 Introduction of Liquidity on Orderbook Programme (PDF)
Proprietary Liquidity Programme (PLP)
The PLP rebates liquidity-additive trading on LMEselect which benefits all users of the market.
Eligible contracts for the PLP include outright, medium-dated carry, and long-dated carry contracts in aluminium, copper, zinc, nickel, lead, and tin which are traded on LMEselect.
This programme is available to all proprietary trading firms (as defined in the LME Incentive Programme General Terms (PDF)). Proprietary trading firms can apply for the new PLP programme using the form below.
Current documents
Proprietary Liquidity Programme - application form (PDF)
Proprietary Liquidity Programme - application support (XLSX)
Proprietary Liquidity Programme - specification (PDF)
25 039 Proprietary Liquidity Programme (PDF)
Electronic Volume Programme (EVP)
The Electronic Volume Programme (EVP) is the London Metal Exchange's latest initiative designed to enhance market liquidity and transparency. Governed by the Incentive Programme General Term (PDF)s, the EVP focuses on encouraging robust trading activities on LMEselect.
Programme details
- Objective: To promote transparent liquidity and incentivize higher usage of LMEselect.
- Rebate Mechanism: Participants are rewarded through a rebate system, fostering a more dynamic order book and benefiting all electronic marketplace users.
Application process
- Members can apply on behalf of their clients for EVP participation.
- Applications are accepted from 14 December 2023 until the programme's termination.
- Direct submissions from clients are not accepted.
Eligibility
- Open to the investment community, including authorized investment managers and CTAs.
- Participants of the LME’s Proprietary Liquidity Programme (PLP) are eligible but require a separate application for EVP.
- The LME reserves the right to final eligibility decisions.
Contract specifications
- Applicable to outright, medium-dated carry, and long-dated contracts in specified metals.
- Trades must meet specific execution and identification criteria to be eligible.
Rebate criteria
- Rebates based on Average Daily Volume (ADV).
- Specific thresholds set for rebate amounts, with detailed calculation guidelines provided.
- PLP participants joining EVP subject to different thresholds.
Compliance and duration
- Strict adherence to eligibility and rebate criteria is mandatory.
Contact and further Information
For detailed programme terms, eligibility, and application process, please refer to the Incentive Programme General Terms or contact the LME Global Client Development team.
Electronic Volume Programme - application form (PDF)
Electronic Volume Programme - specification (PDF)
Electronic Volume Programme - application support (XLS)