London Metal Exchange (LME) today announced the steps that will arise from the measures described in the September 2024 White Paper on enhancing liquidity.
Phase 1 changes will be spread in 2025 and in the first half of 2026, with further changes to be examined in the second half of 2026.
LME was issued today a consultation On the proposed introduction of trade -ranks and transit rules designed to encourage transparency and prices competition on LME’s electronic trading platform.
After a number of technical laboratories, LME has improved its original approach and now proposes to add some exceptions to ensure that members can continue to guarantee customer closure orders and introduce an automated intersection to reduce their clients.
LME also suggests a calibrated block of block per metal based on a quantitative resolution to ensure that the limit is properly reflecting each market.
To support the natural market and the daily date structure, LME proposes to further extend the exceptions of the trade block originally proposed to the White Paper.
In addition, to support the ongoing liquidity and trading on dates dates, LME proposes the expansion of the short -term definition of transfer for an initial period of one year, which will reduce the fees for certain daily transactions, regardless of whether they are executed in LMESELECT or between the offices.
After a detailed discussion with market users, LME does not currently propose to introduce bloc -like rules for OTC (OTC) transactions, but will proceed with this market monitoring proposal to indicate that the exchange controls were encouraged to be encouraged.
Instead, LME proposes to adopt an approach based on fees to level the competition field between the exchange and the OTC market by increasing the OTC financial detention fee for OTC Lookalike contracts. This aims to enhance the behavior that contributes to price formation and market integrity.
Among the other changes to be introduced are a liquidity supply program to support electronic liquidity development, as well as the new LMESELECT functionality that includes optimizing the tick size calibration and the activation of TAS transaction functionality between basic contracts.
In the context of Phase 2, LME intends to make progress plans to make all the risk transactions in the transparent LME market slide market-with appropriate exemptions from large-to-scale transactions that will further enhance transparency and justice for market users.
LME will also seek the progress of the proposal for the publication of OTC commercial data as well as for open interest data to bring more transparency to the market.
In addition, LME will continue to implement new LMESELECT functionality to support liquidity improvement measures, such as improvements in implied pricing and self-execution prevention.
The consultation issued today will be open By June 13 2025 And LME encourages all interested parties to provide comments.