London Metals Exchange Set to Raise Charges as Part of Simplified Fee Schedule
- Expected to come into force on January 1st 2015, the LME's new fee schedule will raise existing registration and execution fees by an average of 34%. The move is the first of its kind since the LME was bought by HKEx in 2012.
Hong Kong Exchanges and Clearing Limited (HKEx) has announced that its subsidiary, the London Metals Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv (LME), will be raising fees and charges on a range of tradable products from January 1st, 2015. The average LME transaction fee (including trading and clearing) will increase by 34%.
The new fee schedule provides an “all-in transaction fee” that includes trading and clearing charges priced in a uniform currency – the US dollar. The LME is thereby aligning exchange fees with the traded contracts’ currency.
The LME will charge its 'Ring' members 50 cents "per leg per side per lot", up from the current 38 cents. Members who are not entitled to trade on the floor will pay 90 cents, compared to the current 58 cents. In 2013, the LME transacted approximately 171 million metals futures and options contracts worth an estimated USD $14.6 trillion.
The LME says the new fee schedule is to be introduced to support the ongoing investment programme aimed at transforming the business. Following the purchase of the LME by Hong Kong Exchanges and Clearing Limited (HKEx) in 2012, significant financial commitments were made in the 'LME' and 'LME Clear' businesses, according to the parent company, HKEx.
If You Build It They Will Come
The LME cites a "changing regulatory environment" which has created tougher reporting requirements and "necessary system upgrades" as the core reasons that require additional investment. The trading venue wants to expand its user base and extend its reach globally.
"Our new tariff is integral to our evolution into a truly commercial global exchange and underpins our continued investment and our next phase of expansion following the successful launch of LME Clear last week,” said Garry Jones, LME CEO and HKEx Co-Head of Global Markets. Adding, “The new LME tariff is competitive and ensures we can continue focusing on innovation and offering users the highest levels of service.”
Charles Li, Chief Executive of HKEx said: “The introduction of a new LME tariff is a necessary step towards realising our vision of building a leading global, vertically integrated Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically class exchange group." Li added, “An increased revenue stream for the LME will deliver better systems, more flexibility for users and more products tailored to meet the changing needs of market users.”
Hong Kong Exchanges and Clearing Limited (HKEx) has announced that its subsidiary, the London Metals Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv (LME), will be raising fees and charges on a range of tradable products from January 1st, 2015. The average LME transaction fee (including trading and clearing) will increase by 34%.
The new fee schedule provides an “all-in transaction fee” that includes trading and clearing charges priced in a uniform currency – the US dollar. The LME is thereby aligning exchange fees with the traded contracts’ currency.
The LME will charge its 'Ring' members 50 cents "per leg per side per lot", up from the current 38 cents. Members who are not entitled to trade on the floor will pay 90 cents, compared to the current 58 cents. In 2013, the LME transacted approximately 171 million metals futures and options contracts worth an estimated USD $14.6 trillion.
The LME says the new fee schedule is to be introduced to support the ongoing investment programme aimed at transforming the business. Following the purchase of the LME by Hong Kong Exchanges and Clearing Limited (HKEx) in 2012, significant financial commitments were made in the 'LME' and 'LME Clear' businesses, according to the parent company, HKEx.
If You Build It They Will Come
The LME cites a "changing regulatory environment" which has created tougher reporting requirements and "necessary system upgrades" as the core reasons that require additional investment. The trading venue wants to expand its user base and extend its reach globally.
"Our new tariff is integral to our evolution into a truly commercial global exchange and underpins our continued investment and our next phase of expansion following the successful launch of LME Clear last week,” said Garry Jones, LME CEO and HKEx Co-Head of Global Markets. Adding, “The new LME tariff is competitive and ensures we can continue focusing on innovation and offering users the highest levels of service.”
Charles Li, Chief Executive of HKEx said: “The introduction of a new LME tariff is a necessary step towards realising our vision of building a leading global, vertically integrated Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically class exchange group." Li added, “An increased revenue stream for the LME will deliver better systems, more flexibility for users and more products tailored to meet the changing needs of market users.”