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Exchange Information

Exchange Background

The London Metal Exchange (LME) is a principal-to-principal market that was established in 1877 and was originally known as the London Metals and Mining Company. The exchange offers futures and options contracts for aluminum, copper, lead, nickel, tin, zinc, and two regional aluminum alloys. In 2005, LME introduced futures contracts in polypropylene and linear low density polyethlene.

The Exchange is regulated by both LME and UK Financial Services Authority (FSA).

Note

You can find the preceding exchange information on LME’s website.

Time and Time Zone

Set the machine that hosts the LME Gateway to run in (GMT) Greenwich Mean Time zone and time. You must turn-on the Automatically adjust clock for daylight saving changes setting.

Required Connection Information

Prior to trading on LME, users must obtain the following from the exchange:

Firm ID

Users must obtain a unique firm ID from the exchange. The user must enter this ID as the GatewayCompany parameter in the hostinfo.cfg file. This field supplies the value of the FIX tag 49 (SenderCompID) in all outbound messages for that connection.

The exchange-assigned FIX session ID (GatewayCompany) is automatically locked by LME if it is not used by the end of the day that it is issued, between 21:00 and 22:00 (GMT+1:00) Western European Time (London) zone and time.

Note

If the exchange-assigned FIX session ID is locked by the exchange, all subsequent FIX logon attempts are rejected. You must contact LME to unlock it.

Connection IP and Ports

Users must obtain connection IP and Ports for the Price API connection and each Order API connection.

The TT LME Gateway maps the Price Server parameters as illustrated in the following list:

  • TT LME Gateway distributes ExchangeIP as Connection IP.
  • TT LME Gateway distributes GatewayCompany as SenderCompID.

The TT LME Gateway maps the Order Server parameters as illustrated in the following list:

  • TT LME Gateway distributes ExchangeIP as Connection IP.
  • TT LME Gateway distributes GatewayCompany as SenderCompID.

SessionPassword

This is assigned by the exchange. Users must enter this value as the SessionPassword parameter in the hostinfo.cfg file. This field supplies the value of Tag 96 (Raw Data) in the Session Startup request message sent to the exchange.

FAXKey

The exchange provides a unique FAXKey which is used to encrypt the SessionPassword.

Exchange API Interface

TT LME Gateways connect to the exchange via the LME Select API.

Matching Engine

The LME matching engine is located in London.

Matching Algorithms

Prices at LME are determined through the open-outcry trading. Following the end of each five-minute ring, official prices, which then become the settlement prices, are determined using the last bid and offer for cash, three months and fifteen months before the ring is ended.

For more detailed information on price discovery, see LME’s website at:

http://www.lme.com/price_discovery.asp.

Available Products

The most commonly traded products at LME are:

Aluminum Alloy

AA

Copper Grade A

CA

Primary Nickel

NI

Standard Lead

PB

Zinc

ZS

In addition, LME offers the following products:

Cobalt

CO

LMEmini

LMEmini contracts are small-size, cash settled monthly futures that are traded both electronically and via the telephone. These contracts are currently available for copper, aluminum, and zinc, tin, nickel, and lead. There is no expiry date for these contracts.

LMEX

The LME Index is an index on the six designated LME primary metals contracts (AA, CA, PB, NI, SN, and ZS).

Molybdenum

MO

North American Special Aluminum Alloy (NASAAC)

NA

Primary Aluminum

AH

Steel billet (Mediterranean region)

FM

Tin

SN

Asset Classes

LME offers products in the following classes:

  • Futures
  • Spreads
  • Strategies

Trading Hours

Trading at LME is available through three side-by-side trading platforms. Accessibility of these platforms is contingent on membership type.

The LME trading platforms are:

  • Open-outcry: Also referred to as Ring trading, open-outcry trading is available from 11:45 - 17:00 (GMT + 1:00) Western European Time (London) zone and time.
  • LME Select: The Exchange-operated electronic trading platform is available from 01:00 - 19:00 (GMT + 1:00) Western European Time (London) zone and time.
  • Inter-office telephone market: This market is available 24 hours a day.

Unsupported Exchange Functionality

The following lists exchange functionality that TT does not currently support:

  • Options
  • Average prompts
  • Traded Average Price Options (TAPOs)