LME to introduce implied pricing functionality for base metals

The London Metal Exchange will implement an implied pricing functionality from July 30, extending it from the existing LMEprecious service to base metals contracts, the bourse said in a note to members on Tuesday July 17.

Following its success across LMEprecious contracts, implied pricing aims to provide market-wide access to previously untapped liquidity on monthly dates through LMEselect, facilitating smaller monthly trades through direct electronic access. First introduced in the LME’s Strategic Pathway paper in September 2017, implied pricing works as a “matching engine,” combining outright bids and offers on the liquid...

Published

Hassan Butt

July 17, 2018

12:59 GMT

London