London Metal Exchange launches LMEswaps
The London Metal Exchange (LME) has launched LMEswaps for all of its non-ferrous metals.
The financially-settled contracts based on the average monthly price are the first of their type to be traded on-exchange in the world. They are designed for participants of the physical industry who need to hedge the monthly average price.
“LMEswaps introduce a new kind of contract to the market, which responds to the needs of the physical industry," said Chris Evans, head of business development at the LME. "For the first time, LMEswap users will benefit from a regulated market with the same counterparty default risk protection offered by other...