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| LME plans to introduce 'market-making' programs |
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| News Source：http://www.jinchemical.com/
; SendDate：2015-8-21 10:42:45 |
The London Metal Exchange said Thursday it plans to introduce market-making programs to support the launch of new products and enhance liquidity on existing contracts.
These are the first programs of their kind to be introduced by the LME in its 138-year history, the exchange said in a statement.
"The programs will provide market makers for the LME's forthcoming aluminium premium contract and two new ferrous contracts -- steel scrap and steel rebar -- set for launch on November 23, 2015," it said. "The LME is also today announcing a similar market-making program, coming into effect on October 1 2015, to boost existing third Wednesday contract liquidity on LMEselect as part of its Liquidity Roadmap initiative."
The announcement today by the LME initiates the formal process to appoint market makers, the exchange said.
As such, parties are invited to submit their proposals by September 8 for the third Wednesday contracts, and September 30 for the premium and ferrous contracts.
Head of Business Development at the LME Matthew Chamberlain said: "This is a big step for the LME as we aim to enhance participation on the Exchange and further develop our range of products for global metals traders."
To support the launch of the LME's new products, the exchange also plans to introduce a fee holiday from the date of the new contracts' launch until the end of this year.
As of January 2016, the new contracts will trade on a competitively priced fee schedule, which the LME has also unveiled Thursday.
The programs and new products are subject to final regulatory approval from the Financial Conduct Authority and rule change consultations for the LME.
"These market-making programs will give our initiatives the best possible start, ensuring they meet the market's trading and hedging needs from the outset," Chamberlain said. |
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