As outlined in the White Paper on Enhancing Liquidity (Notice 24/240), the LME has revised the tick sizes for certain spread instruments for aluminium, copper, lead, nickel, tin and zinc.
Appropriate tick size calibration is a key component of the package of measures designed to enhance liquidity and disincentivise negative trading behaviours where participants marginally improve on existing orders in the order book providing the impression of low levels of liquidity at the top of the order book.
There are no changes to the LME Closing Prices – Benchmark Methodology (PDF) as a result of the tick size changes.
Trading spreads
The LME allows its users to create spreads (sometimes referred to as “carries”), which involve the simultaneous purchase and sale of two prompt dates of the same metal.
The revised tick changes are applicable to the six base metals for:
(i) any spread where both legs are greater than the three-month (3M) prompt, including the spreads where the first leg is the 3M prompt, and
(ii) 3M–3rd Wednesday (3W) and 3W–3W spreads.
The tick size changes are only applicable to electronic spreads, as set out below:
| Metal | Current outright tick size | Current spreads tick size | Large tick spreads (inc. all 3M-3W and 3W-3W)* | Small tick size spreads* |
| Aluminium | 0.50 | 0.01 | 0.25 | 0.01 |
| Copper | 0.50 | 0.01 | 0.25 | 0.01 |
| Zinc | 0.50 | 0.01 | 0.25 | 0.01 |
| Nickel | 5.00 | 0.01 | 1.00 | 0.01 |
| Lead | 0.50 | 0.01 | 0.25 | 0.01 |
| Tin | 5.00 | 0.01 | 1.00 | 0.01 |
*Large spread
A Large spread includes:
• All 3W–3W and 3M–3W instruments anywhere along the curve, and
• Any spread where either leg extends beyond the 3 month (3M) prompt, including spreads where the first leg is the 3M prompt.
*Small spread
A Small spread is any spread where both legs fall within the 3 month (3M) date, and the instrument is not a 3W–3W or 3M–3W spread. As an example, Tom Next, daily to daily spreads etc.
The changes took effect at market open on Tuesday 20 January 2026.
Some examples of tick size changes are illustrated below.
Example 1: Copper M1-3M
| M1-3M | |||
| Vol | Bid | Ask | Vol |
| 19 | 2.5 | 2.75 | 5 |
| 7 | 2.2 | 2.85 | 3 |
| 5 | 1.9 | 3 | 7 |
In this example:
- the first leg (M1) is a 3W contract
- the second leg (3M) is 3M and therefore considered on/before 3M
M1-3M tick size value is now 0.25. Therefore, from 20 January 2026, any orders entered which are not the correct tick size will automatically be rejected.
The orderbook below illustrates the revised tick size value of 0.25:
| M1-3M | |||
| Vol | Bid | Ask | Vol |
| 19 | 2.5 | 2.75 | 5 |
| 7 | 2 | 3 | 10 |
| 5 | 1.75 | ||
- the bid of seven lots at $2.2 can only be entered at $2
- the next best bid of five lots can only be entered as $1.75
- the three lots (originally offered at $2.85) can only be entered at $3, joining the existing seven lots at $3. Therefore, there will be 10 lots at $3
| M1-27Jan26 | |||
| Vol | Bid | Ask | Vol |
| 19 | 2.5 | 2.75 | 5 |
| 2 | 2.2 | 2.85 | 1 |
| 5 | 1.9 | 3 | 1 |
In this example:
- the first leg (M1) is a 3W contract
- the second leg (27 Jan 26) is before the 3M prompt
- the second leg (27 Jan 26) is not a 3W contract but is a broken-dated prompt
Neither leg in the spread M1-27Jan26 is a 3M or 3W contract. Therefore, there are no changes to the tick sizes.