The LME’s unique date structure supports participants in aligning hedges with physical contracts, enabling positions to be held on specific daily dates up to three months forward.
The LME allows its users to create spreads (referred to as “carries”) which involve the simultaneous purchase and sale of two prompt dates of the same metal. These can be categorised into three main categories: short-dated, medium-dated and long-dated carries. The three categories have different fees, which are set out in the LME Fee Schedule.
From 24 August 2026, the LME has defined a short-dated carry as a carry trade where the prompt dates of both legs are within 15 calendar days of each other and are both within the first 60 calendar days. Prior to that, the definition was limited to a carry where the prompt dates of both legs are within 15 calendar days of the TOM date (ie T+1 to T+16).
Some examples of short-dated carries (before and after the definition change) are illustrated below.
Previous definition of short-dated carries
Example 1 is considered a short-dated carry as per the previous definition as it is a 4-day carry that falls within TOM+15, with the first prompt date as TOM.
New definition of short-dated carries
Example 1 is a short-dated carry as per the new definition as it is a 7-day carry that falls within TOM+60, with the first prompt date as TOM.
