Lme Membership Agreement

The LME is a highly liquid global market with international membership. Because it is a major market, the only organizations that can trade with LME are their member companies, whose categories are different. LME members provide the physical and financial industry with access to the market, risk management tools and implementation mechanism. In March 2015, the LME announced that it had reached an agreement with Borsa Istanbul under which Borsa Istanbul acquired LME`s stake in the LCH clearing house. Clearnet and Borsa Istanbul, LME and LME`s parent company, Hong Kong Exchanges and Clearing (HKEx), would join the dissemination of market data. Under the agreements, the LME concedes its data on the installation of steel batons in Borsa Istanbul and is working with the Turkish Stock Exchange to develop future products and services for the steel market. [17] In addition to the standard versions of traders and customers of the Give-Up agreement, the Fia Law-Compliance Division provides more personalized versions of “give-up” agreements for transactions executed on the London Metal Exchange (LME) in which either direct execution or the two clearing agents are not LME member companies. LME Give-Up agreements are available in dealer and customer versions and are specially designed to comply with LME rules. Please note that in the case of cancellation agreements executed on the LME, if the executing broker and the countervailing broker are countervailing members of the LME and no non-member compensation or performance participates in the transaction, standard versions of customers or resellers should be used. October 30, 2017, The LME announced the delivery program for its “strategic route,” including several new launches and subscription changes, including carry trade rate reductions, size revision, implied pricing and at-ground trade functionality on LMEselect and LMEprecious gold and silver options complement, following the future on platin and palladium.

[22] . On August 5, 2014, the LME released its first report on distributor commitments (COTR) in response to the general demand for market transparency. The COTR was designed to reflect the nature of the dominant activity in which LME members and their clients participate. The report will be reviewed in conjunction with the daily Warrant-Banding reports, which are published daily by the LME in accordance with its lending guidelines. On September 29, 2014, LME announced a 34% increase in transaction fees as of January 2015. [8] [9] This step should help cover the growing costs of the regulatory environment and the necessary upgrades following the purchase of LME by HKEx. [10] In December 2014, however, the LME reduced the proposed increase to 31% following complaints from members. [11] In November 2015, the LME launched four regional aluminum premium contracts, which allow consumers to guard against premiums paid to producers in addition to metal prices, as part of the stock exchange`s attempt to reform their storage system. Premiums had increased because of long queues. [34] Contracts must cooperate with the LME Aluminium “mother contract” and include an exchange of options.

[35] In June 2014, after six months of internal audit and discussions with market participants, the LME stated that it had decided to keep its trading area open and to continue to invest. [20] Since then, LME has invested hundreds of millions in modernizing its technology. It also announced that it will relocate its commercial area from Leadenhall Street, in the City of London, to a new building one mile north of Finsbury Square. [21] In 2015, 170 million tickets were exchanged on the LME, a fictitious value of 4 billion tons and 12 trillion dollars.