LME And SGX To Launch Three Joint Metal Futures In Feb

LONDON, Nov. 12 -- The London Metal Exchange and Singapore Exchange will jointly launch three new metal contracts in Singapore in February, the LME said Thursday.

The contracts, for copper, aluminum and zinc futures to be traded and cleared exclusively on the SGX, will "enable investors to trade metals in Asia through SGX's wide distribution network of international and regional members," the LME said in a statement.

New contracts based on lead, steel, tin and nickel will be added at a later date.

The LME-SGX metal futures will equal five metric tons per lot--the same specifications as the LME's LMEmini contracts, the exchange said.

"Investors in Asia...have told us they want new ways to trade LME metals," said Martin Abbott, LME chief executive. "The appeal of LME-SGX metal futures lies in their small size, their simple monthly dates and settlement linked to the LME's global benchmark prices."

The contracts will be launched on Feb. 15.

Singapore Exchange Chief Executive Magnus Bocker said he is confident the move will "bring greater vibrancy" to the metals market in Singapore "and benefit Asia."