The LME’s Liquidity Roadmap brings together a set of initiatives which are designed to deliver more electronic trading, more transparency and greater market participation. Created to deliver additional trading opportunities for all market participants, the key advantages of the Roadmap are:
• Enhanced liquidity
• Simpler trading
• Tighter spreads
• Improved price transparency along the curve
• Greater market access
Our Electronic Trader Programme was introduced on 1 June 2016, reducing fees to $0.90 for all registered clients of members trading outright 3rd Wednesdays and 3 months to and from 3rd Wednesdays.
Extension of Liquidity Provider and New Market Participant Programmes
These two incentive programmes have been extended from aluminium, copper and zinc to include nickel, lead and tin from 30 March 2016.
Revision of Error Trade Policy
We recently announced changes to the LME's error trade policy to give the LME the scope to adjust prices in error trades. Full details here.
New release of LMEselect
LMEselect, our electronic trading platform, will be enhanced to provide greater performance and capacity for electronic traders, and to introduce dynamic price limits across all prompts and carries.
Options promotion programme
Greater visibility of traders and brokers of LME options.
Delivered in 2015:
What: In January 2015 we increased LMEselect tick sizes to match our open outcry platform, the Ring.
The benefit: As well as aligning our markets more effectively, we are seeing tighter spreads and deeper liquidity at each price point as a result.
What: We have lifted the LMEselect 50-1 order-to-trade ratio restriction on outright 3rd Wednesdays. It covers aluminium, copper and zinc out to six months.
The benefit: Unrestricted order entry and more liquidity for near-by monthly contracts.
What: Category 3 and 4 members now have direct access to LMEselect, alongside the introduction of additional flexibility in admission criteria for all membership categories.
The benefit: These changes are designed to facilitate greater market access and participation.
What: The Roadmap incentive programme for existing traders to receive volume-based rebates of clearing and trading fees.
The benefit: Lower fees, more volume traded on LMEselect.
What: This programme offers rebates for new participants who have not traded the market before.
The benefit: Incentives for new traders to enter the market, increasing liquidity and trading on LMEselect.
What: Our market making programmes focus on aluminium, zinc and copper traded on LMEselect.
The benefit: Enhancing liquidity in existing contracts focusing on third Wednesdays. Rebates and stipends are available to parties who are accepted onto the programme.
What: As part of LMEselect 7.4 upgrade in April 2015 we have introduced new pre-trade risk management functionality.
The benefit: Facilitating safe onboarding of new customers and a more secure market for all.
What: The clearing house for the LME, LME Clear, launched their post trade compression service.
The benefit: Greater capital efficiency.
In 2014 we gave latency-sensitive member clients direct access to data from LMEselect.
Join us on our journey and get in touch to find out more: