Title: The London Metal Exchange:
1The London Metal Exchange Global Risk management
for Non-Ferrous Metals
George Adcock Business Manager Non-Ferrous
Metals 2nd Global Capital Conference and
Exhibition 2008
2London Metal Exchange Highlights
- Worlds premier industrial metals and industrial
materials market - Internationally recognised
prices - Recognised Investment Exchange (RIE)
- Established for over 131 years
- 30 years of aluminium futures trading
- Highly liquid contracts - 9.5 trillion turnover
in 2007 (93 million lots 2.2bn tonnes) - Principal-to-Principal Market
- Central counterparty - LCH.Clearnet
3Production
Production figures based on annualised Jan-Jun
2008 production data provided by World Bureau of
Metal Statistics.
4Production to trading ratio
Multiples based on trading volumes (futures,
options TAPOs) in tonnes for Jan June 2008,
divided by production over the same period
(WBMS).
5Exchange volumes
6LME Volume turnover - Core contracts
7LME Volume turnover Other contracts
8Price Volatility LME Aluminium, Copper and Zinc
(cash)
9Prompt Date Extensions
- High grade Primary Aluminium and Copper Grade A
contracts from 63 months to 123 months (ten
years) - Special High Grade Zinc and Primary Nickel from
27 months to 63 months (five years) - Standard Lead from 15 months to 63 months (five
years). The Exchange will publish a new 27 month
official price for Standard Lead - The LME will establish and publish Closing Prices
for the additional months
10Aluminium 10 Year Forward Curve
11Zinc 5 Year Forward Curve
12Aluminium and Copper Futures
13Global Delivery Locations LME Approved
EUROPE 16 Locations
NORTH AMERICA 10 Locations
ASIA - 8 Locations
MIDDLE EAST 1 Location
14Exchange Developments 2008/2009
- Steel billet contracts launched H1 2008
successfully trading on the Ring, LMESelect and
the telephone market - Molybdenum and Cobalt H2 2009
15Summary
- 90 of non-ferrous metals traded on the LME
- 9.5 trillion turnover in 2007
- Access via Global Member Firms
- Tools to manage risk in volatile markets
- Highly liquid contracts
- Credibility
- Established
- Global Price Determined
16Disclaimer
George Adcock Business Manager Non-Ferrous
Metals T 44 207 264 5695 E george.adcock_at_lme.c
om
The information contained within this
presentation is for illustrative and educational
purposes only and should not be relied upon in
making any investment decision. Whilst every
effort has been made to ensure the information is
up-to-date and correct, the LME cannot guarantee
that it is completely accurate and free from
human error.