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About the London Metal Exchange :

The London Metal Exchange (LME) is the world's leading metal market specializing in non-ferrous base metals trading. The LME operates successfully with a turnover in excess of US$4,500 billion and market capitalization of around $3,000 billion annually. It plays an important part in maintaining the stability of commodity prices throughout the world.

From January 2000, The London Metal Exchange Limited became a wholly owned subsidiary of a new company - LME Holdings Limited. The LME Limited has up to 13 directors and six of them are the shareholders of LME Holdings Ltd.

Today, the exchange trades in eight metals, two plastics, and one index that include six primary base metals. The eight metals contracts are copper grade A, primary aluminum, standard lead, primary nickel, tin, special high grade zinc, aluminum alloy, and North American Special Aluminum Alloy (NASAAC). The plastic contracts include polypropylene (PP) and linear low density polyethylene (LL). Unlike other markets, trading in the London Metal Exchange is carried out in lots rather than tones.

The London Metal Exchange carries three prime roles - hedging, delivery, and pricing. The participants in the Exchange are protected against risks arising from movements in base metals and plastic prices, provided with storage and delivery facilities, and presented with the references prices in the metal and plastic industry for benchmarking.

The LME has three trading platforms - the open outcry market (ring trading), Inter-office telephone market, and the LME Select market. During ring trading a small number of members trade each LME contract in specific 5-minute periods 'rings.' At present, there are 11 'ring dealers' and they make a significant proportion of the LME contracts. The Inter-office telephone market is a 24 hour global market place transacted between member companies over the phone. Whereas, the LME Select screen trading system is the LME's official electronic trading platform, where accredited traders execute trades electronically. There are about 100 traders involved in the LME trading.

All LME prices are quoted in US Dollars, but the LME permits contracts in sterling, Japanese yen, and Euros. Additionally, the LME provides official exchange rates from US Dollars for each of the other accepted currencies.