Earlier on Tuesday, the exchange said it would offer implied pricing for aluminium, copper, lead, nickel, tin and zinc starting from 30 July. The rollout is designed to be dynamic, with the exchange tweaking the process as it develops.
The implied pricing services will be available on the exchange’s electronic trading platform, LMEselect, with the aim of generating liquidity on its third Wednesday contracts.
The idea was first raised around a year ago when the LME consulted its members on its future strategic direction via a discussion paper.
Although implied pricing wasn’t a specific commitment that came out of that process, it has since become a significant part of the LME’s desire to back away from aggressively promoting monthly contracts and instead letting market users make their own choice.
In fact, the incentive schemes launched to promote the third Wednesday contracts actually increased total LMEselect three-month volumes and provided something...