Abstract:
London Metal Exchange came into existence long back in 1877. Firstly, this commodity exchange started trading of copper,zinc and lead. Afterwards, futures contract and options contract of nickel,alloy and plastic started to be traded in London Metal Exchange.London Metal Exchange was established in the year 1877. At present, it is counted among those premier commodity exchanges of the world, which facilitate futures trading and options trading of non-ferrous metals. In spite of being established in 1877, the London Metal Exchange officially received the commodity trading status in 1920.
Achievements of London Metal Exchange :
- In the very early years of establishment, the exchange used to carry out commodity trading of the metals like copper, zinc and lead.
- Then, in the year 1978, aluminum started to be traded in London Metal Exchange.
- In the same way, nickel in the year 1979 and alloy, in the year 1992 started to be traded through the exchange.
- In the year 2005, London Metal Exchange introduced futures contracts for plastics for the first time in the world. In 2007, the exchange launched future contracts for polypropylene.
- London Metal Exchange carries high liquidity level.
- The exchange has gained a prominent place in the international market. Almost 95% business of London Metal Exchange comes through the overseas members.
- London Metal Exchange offers commodity futures trading and commodity options trading facility through various processes. The producers and consumers can purchase and sell futures and options contracts both electronically and through the auctioning system. The electronic commodity trading platform of London Metal Exchange is called LME Select. This reliable electronic platform has significantly increased the exchange's trading volumes.
- London Metal Exchange provides the facility of transparent pricing. Prices are discovered and published by the exchange on a daily basis.
- London Metal Exchange offers long dated futures contracts and options contracts.
- The exchange also offers hedging facility.
