LME Will Start Non-Ferrous Swaps on Jan. 23, Bourse Says
The London Metal Exchange will start trading non-ferrous metals swaps on Jan. 23, 2012, the exchange said in an e-mailed notice to its members.
The swaps for aluminum, two aluminum alloys, zinc, tin, nickel, copper and lead will be based on delisted so-called over-the-counter Cleared Average Price Swaps. They will be traded on the exchange’s electronic platform LMESelect and on the telephone, the exchange said today.
The instruments will be cleared on LCH.Clearnet Ltd, which clears LME contracts, said Joanna Stuart, head of market surveillance at the bourse.
“We are responding to the demands from our members as well as from users of LME,” Stuart said by phone. “It will be ideal for the physical market. It’s the best way for hedging against physical contracts.”
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