New London Metal Exchange data usage policy

The London Metal Exchange (LME) is introducing a new market data usage policy, effective April 4, 2016. The LME policy relates to specific usage of LME market data, and states that if you or your company are accessing LME data via your Platts subscription either:

(a) for valuation and/or pricing activities; and/or (b) as a reference price in transactions

you will be required to enter into a direct agreement with the LME. An annual license fee will be charged by the exchange for this Usage Licence.

The LME said that examples of using LME data as a reference in transactions include: physical delivery contracts, commercial contracts, client derivatives contracts and other bi-lateral or OTC contracts.

The following examples would be considered by the LME as valuation and/or pricing activities under the licensing policy. Please note, however, that valuation and/or pricing activities are not limited to this list: collateral calculations, portfolio valuations, contract pricing, asset valuations, valuation of holdings or inventories, pricing curves, discount curves and forward curves.

For further information, please visit http://www.lme.com/pricing-and-data/usage, or contact datalicensing@lme.com if you require further clarification.