Trials to discover reference prices for London Metal Exchange contracts through the Volume Weighted Average Price (VWAP) of transactions are planned to begin at the end of the year or the start of 2019, the LME's chief executive officer said.
The exchange is currently engaged in a member-by-member discussion of how a VWAP would work, a process that Matthew Chamberlain said has seen saw market participants put self-interest aside. "We had originally presented VWAP as binary - everything on the ring or everything on LMEselect. But a lot of people have said they don't think it's a binary thing," he told Metal Bulletin in an interview. "There are...