By Paul Ploumis 11 Sep 2015 Last updated at 08:26:36 GMT
NEW DELHI (Scrap Monster): The London Metal Exchange (LME) has announced various initiatives to boost trading volumes. The Exchange has revealed plans to introduce trading in precious metals for the first time. It must be noted that the LME trading volumes in 2014 had recorded the slowest pace of growth in five years.
According to LME, India plays an important role in global metals market. As part of its efforts to widen customer base in India, LME had conducted a roadshow in the cities of New Delhi and Mumbai on 9th and 10th September. After the series of meetings it had with Indian regulators, traders and exchange officials, LME noted that strong growth in base metal demand in India presents tremendous potential for increased trading volumes from the region.
Garry Jones, CEO, LME said that the exchange would explore all possible options to expand its product range for precious metals market. It would launch precious metals contracts after consultations with various industry bodies including London Bullion Market Association (LBMA) and the World Gold Council (WGC). The exchange plans to expand into gold and silver contracts in the next year.
In an effort to boost participation, LME has already relaxed membership criteria. It also plans to introduce fee rebates for members accessing the electronic trading platform.
In addition, the exchange intends to launch regional premium contracts and a range of ferrous products contracts. LME has already announced the launch of new aluminum contract and ferrous suite contract in November. New futures contracts in scrap and rebar will also be launched soon, it stated.
A member of HKEx Group, the LME brings together participants from the physical industry and the financial community to create a robust and regulated market. The exchange had reported trade of nearly 4 billion metric tonnes of metal valued at around $15 trillion in 2014. The LME accounts for 82% of the world non-ferrous metal futures business.