The London Metal Exchange has outlined the terms in which it will conduct its electronic price discovery trial of nickel, introducing a trade-at-settlement (TAS) functionality and setting out a scheduled start date of March 18, the exchange said in a notice to members on Friday February 1.
The electronic trial will last for three months and will end on June 18, 2019. Closing prices for nickel will determined by the use of a volume weighted average price (VWAP) method used across LMESelect the exchange's electronic trading platform. Closing prices for carry trades - which are the simultaneous buying of a metal's near prompt date, and selling of that metal for a later prompt date - will continue to be based on ring trading, with a four-minute kerb session lasting from 16:55 to 16:59, allowing for a one-minute VWAP period, according to the notice. In...