Post by Sapphire Capital on Jul 12, 2008 22:52:23 GMT 4
LME Special High Grade Zinc Futures & Traded Options
Zinc is the fourth most widely used metal in the world. Its resistance to non-acidic atmospheric corrosion means that zinc is instrumental in prolonging the life of buildings, vehicles, ships and steel goods and structures of every kind. Accordingly, galvanising accounts for more than half of all present day applications of metal, and this figure is increasing.
Zinc was traded unofficially on the LME from the outset when the Exchange was established in 1877 and became an official contract in 1915. The LME is the only international exchange to trade zinc and by the 1980s the volume of contracts traded on the LME led the international zinc industry to recognise the Exchange as the reference point for pricing physical contracts. With this development the Exchange became an even more appropriate venue for metal price risk management, a fact clearly reflected by a major growth in turnover.
LME Zinc Futures Contract Specification
Contract Zinc of 99.995% minimum purity. Zinc placed on warrant on or after 1st Nov 2000 must conform with the 99.995% graded zinc chemical composition of the BS EN 1179:1996 Standard entitled "Zinc and Zinc Alloys - Primary Zinc".
Lot size 25 tonnes (with a tolerance of +/- 2%)
Form 1. Ingots (slabs and plates will be referred to as ingots)
Weight Up to 30 kg each. Each parcel placed on warrant shall be delivered in bundles not exceeding 1.5 tonnes.
Delivery dates Daily for 3 months forward and then every Wednesday for the next 3 months and then every third Wednesday of the month for the next 21 months out to 27 month forward.
Quotation US dollars per tonne
Minimum Price Movement Ring - Outright $0.50, Carries $0.01
LME Select - Outright $0.25, Carries $0.01
Inter-office - Outright/Carries $0.01
Clearable currencies US dollar; Japanese yen; sterling; euro
LME Zinc Options Contract Specification
Delivery dates Monthly from the first month out to 27 months
Value date The third Wednesday of the prompt month
Exercise date The first Wednesday of the prompt month
Premium quotation US dollars per tonne
*Strike price $25 gradations for strikes from US$25 to US$3975
$50 gradations for strikes form US$4000 to US$7950
$100 gradations for all strikes over $US8000
*Strike price gradations and tick size for premiums available in all clearable currencies.
LME Zinc Traded Average Price Options Contract Specification
Contract date The business day on which the contract is traded
Contract period Calendar months up to 15, 27 or 63 months forward (in line with the underlying futures contracts). The inclusive period between the first business day and the last business day of the traded month.
Option type Calls & puts based on the monthly average settlement price (MASP)
Currency & strike price US dollars 1 gradations
Premium tick size 0.01 USD (one cent)
Premium payment Next business day after contract is traded
Settlement date Settlement is two business days after exercise
The futures trades settle as per LME rules & regulations.
Access the special contract rules for metals using the LME online rulebook.
The LME futures and traded options contracts for zinc have been upgraded many times to the present standard of special high-grade zinc of 99.995% purity. Each of these upgrades has been carried out following consultation with the international zinc industry to ensure that the LME contract best reflects the needs of both producers and consumers as a risk management tools. In October 2000 the LME introduced traded average price options (TAPOs) contracts to enhance this industrial service.
The contract’s risk management opportunities are enhanced by the market transparency that derives from the security of clearing, stability through regulation and a 24 hour global trading structure.
As a physical contract, the LME can provide the benefits of an international network of warehouses in Europe, Asia and the US for the delivery and take-up of the metal. In addition, it has approved brands from all the major producing companies around the world.
LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the commodity Futures Trading Commission (CFTC), or firms who are permitted to solicit and accept money from foreign futures and options customers from trading on the LME pursuant to CFTC Rule 30.10
Zinc is the fourth most widely used metal in the world. Its resistance to non-acidic atmospheric corrosion means that zinc is instrumental in prolonging the life of buildings, vehicles, ships and steel goods and structures of every kind. Accordingly, galvanising accounts for more than half of all present day applications of metal, and this figure is increasing.
Zinc was traded unofficially on the LME from the outset when the Exchange was established in 1877 and became an official contract in 1915. The LME is the only international exchange to trade zinc and by the 1980s the volume of contracts traded on the LME led the international zinc industry to recognise the Exchange as the reference point for pricing physical contracts. With this development the Exchange became an even more appropriate venue for metal price risk management, a fact clearly reflected by a major growth in turnover.
LME Zinc Futures Contract Specification
Contract Zinc of 99.995% minimum purity. Zinc placed on warrant on or after 1st Nov 2000 must conform with the 99.995% graded zinc chemical composition of the BS EN 1179:1996 Standard entitled "Zinc and Zinc Alloys - Primary Zinc".
Lot size 25 tonnes (with a tolerance of +/- 2%)
Form 1. Ingots (slabs and plates will be referred to as ingots)
Weight Up to 30 kg each. Each parcel placed on warrant shall be delivered in bundles not exceeding 1.5 tonnes.
Delivery dates Daily for 3 months forward and then every Wednesday for the next 3 months and then every third Wednesday of the month for the next 21 months out to 27 month forward.
Quotation US dollars per tonne
Minimum Price Movement Ring - Outright $0.50, Carries $0.01
LME Select - Outright $0.25, Carries $0.01
Inter-office - Outright/Carries $0.01
Clearable currencies US dollar; Japanese yen; sterling; euro
LME Zinc Options Contract Specification
Delivery dates Monthly from the first month out to 27 months
Value date The third Wednesday of the prompt month
Exercise date The first Wednesday of the prompt month
Premium quotation US dollars per tonne
*Strike price $25 gradations for strikes from US$25 to US$3975
$50 gradations for strikes form US$4000 to US$7950
$100 gradations for all strikes over $US8000
*Strike price gradations and tick size for premiums available in all clearable currencies.
LME Zinc Traded Average Price Options Contract Specification
Contract date The business day on which the contract is traded
Contract period Calendar months up to 15, 27 or 63 months forward (in line with the underlying futures contracts). The inclusive period between the first business day and the last business day of the traded month.
Option type Calls & puts based on the monthly average settlement price (MASP)
Currency & strike price US dollars 1 gradations
Premium tick size 0.01 USD (one cent)
Premium payment Next business day after contract is traded
Settlement date Settlement is two business days after exercise
The futures trades settle as per LME rules & regulations.
Access the special contract rules for metals using the LME online rulebook.
The LME futures and traded options contracts for zinc have been upgraded many times to the present standard of special high-grade zinc of 99.995% purity. Each of these upgrades has been carried out following consultation with the international zinc industry to ensure that the LME contract best reflects the needs of both producers and consumers as a risk management tools. In October 2000 the LME introduced traded average price options (TAPOs) contracts to enhance this industrial service.
The contract’s risk management opportunities are enhanced by the market transparency that derives from the security of clearing, stability through regulation and a 24 hour global trading structure.
As a physical contract, the LME can provide the benefits of an international network of warehouses in Europe, Asia and the US for the delivery and take-up of the metal. In addition, it has approved brands from all the major producing companies around the world.
LME contracts may only be offered or sold to United States foreign futures and options customers by firms registered with the commodity Futures Trading Commission (CFTC), or firms who are permitted to solicit and accept money from foreign futures and options customers from trading on the LME pursuant to CFTC Rule 30.10