London Metal Exchange Sets Record Trading Lots in 2008

The London Metal Exchange (LME) achieved another record year in 2008 with over 113 million lots traded, representing a year-on-year increase of nearly 22 percent.

This was the fourth consecutive year of record volumes for the Exchange, up from the 93 million lots traded in 2007, which itself was an increase of 7 percent on 2006. The turnover in 2008 reached some 10.24 trillion U.S. dollars, an increase of 7 percent on 2007.

Against a backdrop of exceptional market turmoil during the year, this strong performance reinforces the LME's position as the leading market for industrial metals, said Martin Abbott, LME chief executive.

He said that in addition to the launch of the steel billet futures contracts, 2008 also saw the introduction of new services, including the extension of calendar, with the market now able to trade aluminum and copper out to ten years, and lead, zinc and nickel out to five years, reflecting the growing demand for exchange-traded risk management products.

Among the contracts showing the highest volume growth in 2008, nickel futures volume grew 37 percent, to 5.2 million contracts; lead futures were up 32 percent to 6.1 million; and zinc increased 28 percent to 16.1 million. Aluminum futures, the Exchange's largest contract, reached 48.3 million lots, an increase of 20 percent on 2007. Copper futures, meanwhile, were up nearly 24 percent year-on-year, at 26.5 million lots.

LME has demonstrated its ability to continue to provide highly liquid, efficient and robust markets and investment in infrastructure and product development will continue in 2009, said the CEO.

The Exchange is the world's premier non-ferrous metals market, which offers futures and options contracts for aluminum, copper, nickel, tin, zinc and lead plus two regional aluminum alloy contracts.

Source: CRIEnglish