HKEX London Metal Minis are contracts designed to meet the needs of Asian participants who want to mitigate or take on metal price risk using CNH or US dollar denominated futures. Traded on the HKEX derivatives platform, the small-lot contracts are available in six base metals: aluminium, zinc, copper, nickel, tin and lead.
• Traded and priced in CNH or US dollars
• Small lot size, monthly contracts
• Cash settled against LME "parent" contract Official Settlement Price
• Available in six metals - aluminium, zinc, copper, nickel, tin and lead
• Traded on HKEX derivatives platform.
To complement the existing CNH suite, on 5 August 2019 HKEX introduced six US dollar-denominated HKEX London Metal Minis. These new contracts provide additional options for investors with exposure to base metals denominated in US dollars in the Asian time zone and complement HKEX’s existing CNH futures products.
The CNH London Metal Mini contracts are designed to match Chinese physical market stakeholders’ exposure to commodities contracts priced in renminbi (RMB), establishing RMB pricing of metals during Asian trading hours and offering arbitrage opportunities with other commodities exchanges.
To facilitate participation from LME members and their clients, Hong Kong Futures Exchange (HKFE) has reintroduced a reciprocal membership arrangement (RMA) in conjunction with the LME.
Under this reciprocal arrangement, the LME and HKFE will waive their respective first year’s annual subscription and application processing fees for new applicants who already hold a membership or participantship at either one of the Exchanges.