London Metal Exchange (LME) has made preparations to scupper
New York Mercantile Exchange (Nymex)'s plans to become the
first marketplace to offer electronically traded mini base
metals contracts after the London exchange announced a launch
date in November.
LME said it would launch copper, mini aluminium and zinc
contracts, which would be traded only on its online platform
Select. The exchange said that the contracts would each be
sized at five tonnes per lot, compared to its current lot size
of 25 tonnes and would be cash settled against the official
settlement price of the full size contract on the cash day for
the third Wednesday of each month.
Nymex Europe had planned to launch a similar suite of
contracts, but had been prevented by the ongoing dispute
between itself and Comex over electronic trading rights.
LME's announcement was looked on by some as an early sign as
to the future worth of the exchange's floor trading activities.
One source close to LME pointed out that if the new contracts,
called LME minis, proved a success and started to take volume
away from the floor it could become a turning point for the
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