The London Metal Exchange (LME) is a futures and forwards exchange with the world’s largest market in standardized forward contracts, futures contracts, and options on base metals. The London Metal Market and Exchange Company was established above a hat shop in Lombard Court and trades in tin, copper, and pig iron. It was the precursor of LME.
The exchange also offers contracts on ferrous metals and precious metals. The company also allows for cash trading. It offers hedging, worldwide reference pricing, and the option of physical delivery to settle contracts. The London Metal Exchange provides a forum for all trading activity.
London Metal Exchange Index consists of 6 metals with the following weights: aluminum (42.8%), copper (31.2%), zinc (14.8%), lead (8.2%), nickel (2%), and tin (1%). Weightings of the six metals are derived from global production volume and trade liquidity averaged over the preceding five-year period. The trading times are 11:40 to 17:00 GMT.
The LME launched an electronic platform called LME Select launched in February 2001. This was developed by a Swedish software house Cinnober. The platform is a FIX-based trading platform, and now handles a majority of the total LME business.
According to Internet