The London Metal Exchange has begun publishing live forward prices for all metals traded in the last Ring session of the day (the afternoon “Kerb”), a refinement that will add further transparency to the procedures used to establish the Closing Prices.
The forward curve is available for the key prompt dates and displayed on a daily basis from 16.15 by LME licensed data vendors and on the electronic wallboards in the Ring dealing area. As the prices for the forward curve change during the Kerb session they will be amended and displayed accordingly.
“The live forward curve is the latest in a series of enhancements that we have implemented in response to a member consultation on our Closing Prices,” says Peter Childs, Head of Price Discovery at the LME.
In October 2011, the LME extended its range of published Official Prices to include forward December prompt dates. This change reflected a growing tendency for metal to be transacted on a yearly December-to-December basis, and makes it easier for market participants to match their physical trades with their hedging activity.