LME adopts Fastmarkets MB prices for new cash-settled derivatives
Published: Monday, 11 March 2019
The exchange's new contracts - backed by Fastmarkets prices - will give market participants an additional way to hedge.
The London Metal Exchange (LME) and Fastmarkets have today
launched three new cash-settled derivative contracts to provide
effective risk management tools for the aluminium, alumina and
The LME will offer these hedging mechanisms settled against the
following Fastmarkets MB prices:
The final settlement price for the respective contracts is an
arithmetic average of the applicable Fastmarkets MB price
listed above in the expiring contract month.
- Cobalt standard-grade, in-warehouse, free market $ per lb
- Alumina Index Fob Australia $ per tonne (Fastmarkets
- Aluminium P1020A, in-warehouse Rotterdam duty-unpaid,
spot low-high, $/tonne
"The cobalt, alumina and aluminium premium price assessments
published by Fastmarkets MB are the go-to reference for the
physical markets. They are already recognized as being
sensitive to the unique characteristics of each market and we
look forward to continuing to engage with the industries as
they evolve," Fastmarkets chief executive officer Raju Daswani
Key market participants have endorsed the
exchange’s partnership with Fastmarkets MB as a
critical step in the evolution of risk management.
"This partnership with the LME is a testament to how ingrained
Fastmarkets MB prices have become in the physical markets," Jon
Mulcahy, Fastmarkets price development manager for Europe,
said. "These hedging tools will provide new risk management
solutions for market participants to better manage their
exposure to price volatility across these commodity sectors."
Fastmarkets achieved type-1 IOSCO assurance for its
standard-grade cobalt price and alumina index, and type-2 IOSCO
assurance for its aluminium duty-unpaid Rotterdam premium, in
August last year.
For more information please contact Katherine Kellar at firstname.lastname@example.org.
Fastmarkets is the leading price reporting, analytics and
events organization for the global metals, mining and forest
products markets. Fastmarkets' core activity in pricing drives
transactions in commodities markets around the world and is
complemented by news, industry data, analysis, conferences and
insight services. Fastmarkets includes brands such as
Fastmarkets MB, Fastmarkets AMM (previously known as Metal
Bulletin and American Metal Market respectively), Fastmarkets
RISI and Fastmarkets FOEX. Its team of over 400 people are
located in 14 global offices including London, Boston, New
York, Shanghai, Beijing, Singapore, Brussels and São
Paulo. Fastmarkets is part of Euromoney Institutional Investor
PLC (LSE:ERM), a listed company on the London Stock Exchange.
Euromoney is a leading international business-to-business
information group focused primarily on the global commodities,
banking and asset management markets.