LM
ME Liqu
uidity Ro
oadmap
p – Liqu
uidity Providerr Prograamme
The
e Liquidity Roadmap is the Lond
don Metal Exchange’’s (LME) co
ommitmentt to deliverring even
morre – more lliquidity, more
m
transsparency, m
more mark
ket particip
pation. As p
part of the Roadmap,,
the LME has in
ntroduced a new Liqu
uidity Provvider Progrramme forr memberss.
The programm
me is design
ned to foste
er increased
d liquidity via electroniic trading oon LMEselecct, and in
turn
n, nurture liquidity in the LME’s 3 month and
d outright 3rd Wednesd
day contraccts.
App
proved mem
mbers are eligible
e
to re
eceive rebaates for trad
ding client contracts
c
foor outright 3 month
rd
and
d 3 Wedne
esday conttracts place
ed on LMEsselect, based on the sp
pecific volum
me thresho
old banding
gs
show
wn below. Application forms are
e available ffrom our te
eam at road
dmap@lme .com or on our websitte
lme
e.com/road
dmap.
3 month
m
conttracts
Lots traded pe
er
month
Totall fee, incl. reb
bate, per
side per
p lot, US$ (in
ncluding
clearing)1
Total reba
ate in respectt of
per lot trrading fee, US
S$
Tottal rebate in respect
r
of perr
lot clearing fee, US$
0-10,000
2.70 (cu
urrent client headline)
0.00
0.000
10,001-25,000
2.50
0.14
0.066
25,001-50,000
2.30
0.29
0.111
50,001-140,000
2.10
0.43
0.177
140
0,001-200,000
1.90
0.58
0.222
Ove
er 200,000
0.90
1.30
0.500
3rd Wednesda
W
ay contractts
Lots traded pe
er
month
Totall fee, incl. reb
bate, per
side per
p lot, US$ (in
ncluding
clearing)1
Total reba
ate in respectt of
per lot trrading fee, US
S$
Tottal rebate in respect
r
of perr
lot clearing fee, US$
0-2
2,000
2.70 (cu
urrent client headline)
0.00
0.000
2,001-3,000
2.20
0.36
0.144
3,001-4,000
1.70
0.72
0.288
4,001-5,000
1.20
1.08
0.422
Ove
er 5,000
0.90
1.30
0.500
1
Note
e the amounts sshown in this co
olumn include th
he Client Contraact fee of USD 1..80 (charged at USD 0
0.90 per leg, prior to the appliccation of any reb
bate) plus an Exxchange Contracct (USD 0.90). The rebate is applied
d in respect of th
he Client Contra
acts only. The am
mount payable for the Excha
ange Contract (U
USD 0.90) is inclluded in each ro
ow in this colum
mn for the sake o
of comp
pleteness. Liq
quidityy Provid
der Prog
grammee
Ex
xample
Fo
or a memberr client trading up to 10
0,000 lots in
n a 3 month aluminium contract, th
he current to
otal trading
an
nd clearing ffee for the outright
o
Clie
ent Contractt (together with
w the acccompanying
g Exchange Contract) on
LM
MEselect is U
US$2.70 perr lot.
If the
t individu
ual trader were to trade
e more than 10,000 lots and less tha
an 25,000 loots, the reba
ate per lot will
w
be
e US$0.20 – so the total trading and
d clearing feee payable will
w be US$2
2.50 per lot.
Reb
bate calculation
The Liquidty Prrovider Pro
ogramme is not a ‘cliff eedge’ programme – th
he total reb
bate is calcu
ulated based
d
on the
t volumee traded, pe
er threshold
d level. Belo
ow the initiaal threshold
d (which is 110,000 for 3 month
contracts, and 2,000 for 3rd Wednesd
day contractts), no rebaates are awa
arded. A reb
bate calcula
ator will be is
avaiilable on ou
ur website at
a lme.com
m/roadmap..
Elig
gibility
There will be a number off criteria to qualify for tthe programme, which is open too proprietary trading
firm
ms and indivvidual trade
ers, trading via LME meember firms. The programmes annd specific eligibility
e
crite
eria are sub
bject to final specification and reg
gulatory approval. Imp
plementatioon of the incentive
prog
grammes w
will also require certain
n changes tto the LME Rulebook,
R
which
w
are suubject to a member
consultation.
Find
d out more
e
The LME Team are availab
ble to discuss the Road
dmap, the Liquidity
L
Provider Proggramme and any of the
speccific Roadm
map initiativves in more detail.
Join
n us on the jjourney and
d get in tou
uch with dirrectly the te
eam by email at roadm
[email protected] or visitt
our website lm
me.com/roa
admap for more
m
inform
mation.
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all Street, London
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