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The LME is the world's premier metals and industrial materials exchange. Through its unique structure of three complementary trading systems, and physical delivery mechanism the Exchange provides unrivalled leadership, credibility, efficiency, flexibility and liquidity to the market
The London Metal Exchange is used as a reference price by over 95% of the world's physical metals trading. It generates an annual turnover of $USD10.24 trillion in 2008.
The Exchange has built long-term relationships within the metals and financial communities and provides transparent prices, and a forum for price risk management to the global metals industry.
This unrivalled experience establishes the London Metal Exchange as the Exchange with the capabilities, resources and proven relationships, to deliver credible and market-driven risk management tools for the molybdenum and cobalt industries.
A secure and well regulated environment is fundamental to the success of molybdenum and cobalt futures. The LME has a statutory requirement to ensure that business on its markets is conducted in an orderly manner and it is a Recognised Investment Exchange (RIE) providing robust protection to participants.
Regulation of the market is largely carried out by the LME, while the Financial Services Authority (FSA) is responsible for regulating the financial integrity and conduct of the LME members’ business. The LME has a global reach and perspective through its member firms who provide specific tailored services to clients that wish to use the LME.
Trading spans all geographies, and deals are brokered by members 24 hours a day through its three trading platforms.
The LME is unique in comparison to other financial exchanges and markets because of its strong relationships with the non-ferrous metals community. Because cobalt and molybdenum are by-products of copper and nickel, the LME and its members already have strong relationships in these markets. With futures contracts the cobalt and molybdenum industry will be able to manage their price risk in inherently volatile markets.
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