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Liquidity Roadmap: Liquidity Provider Programme

The Liquidity Provider Programme, part of our Liquidity Roadmap, is our trading incentive scheme designed to foster increased liquidity via electronic trading on LMEselect. Available to existing proprietary participants, the programme is available on 3 month contracts in aluminium, copper, lead, nickel, tin and zinc.

Rebate provision
Approved members will be eligible to receive rebates for trading client contracts for outright 3 month contracts placed on LMEselect, based on the specific volume threshold bandings shown below.

The rebates will be available only for client trades placed by individual traders within client proprietary trading firms.

View our application process and forms 

Rebate thresholds

Eligibility
A “Proprietary Trading Firm” must be a legal entity dealing as a principal as part of a business of trading in specified investments that trades its own capital and satisfies the following conditions:

  • all trading must be done in proprietary trading accounts held in the name of the relevant entity;
  • all trading must be done electronically by owners, employees or contractors of the relevant entity;
  • only the relevant entity’s capital can be at risk of loss;
  • all trading must be solely for the benefit of the relevant entity. No other individuals or entities can have any ownership interest in these accounts;
  • all funds contributed to and traded under the relevant entity are subject to loss from any and all trading activity of the company;
  • all profits and losses of the account are booked to income of the relevant entity; and
  • net profits of the account after the distribution of trader incentives and deduction of expenses are taxed to the relevant entity.

By way of guidance, a proprietary trading desk within a hedge fund/commodity trading advisor will generally be deemed to fall within the definition of a Proprietary Trading Firm provided it meets the criteria above.

For the avoidance of doubt, firms undertaking in-house hedging business will not meet the definition of a Proprietary Trading Firm.

 Download LME Notice 15/254 : A248 for full eligibility criteria and complete details of both the Liquidity Provider and New Market Participants Programme.

View our Application process