The London Metal Exchange (LME) and LME Clear Limited seek the views of Members and other interested parties in relation to: (i) proposed changes to the LME and LME Clear’s option expiry process for Metal Options (or Exchange-Traded Options in LME Clear terminology); (ii) the introduction of a new business continuity process in relation to the current Metal Options expiry process; and (iii) the amendments to the Rules and Regulations of the LME and to the LME Clear Rules and Procedures required to facilitate such proposals.

The current manual expiry process introduces operational complexity and potential risk for market participants and for LME Clear. Manual workflows require multiple layers of communication between Clients and Clearing Members, and between Clearing Members and LME Clear, increasing the likelihood of errors in relation to the exercise or abandonment of Metal Options.

Automated expiry, by contrast, aligns with market practice across key global derivatives exchanges and provides a more robust and predictable framework for both market participants and for LME Clear. It reduces the burden on operations teams, increases certainty for market participants in relation to the valuation and exercise of their Metal Options, and supports broader participation by removing operational and cost-related barriers to entry associated with a manual exercise process.

The proposals include:

1. amending the expiry process for Metal Options from a manual, to an automated, process;
2. changing the price against which Metal Options exercise to use the relevant Closing Price for M1 on the Expiry Day;
3. moving the Expiry Time on the Expiry Day from 11:15 to the time at which the LME records the finalised Closing Prices within its internal pricing system (expected to be at or around 17:50);
4. amending Metal Options from American to European-style Options; and
5. introducing a new LME Clear business continuity expiry process.

This consultation is open to all interested parties including, but not limited to, Members, Clients and Indirect Clients of Members, Affiliates of Members, Dealers and other market participants. Formal responses to the consultation should be submitted in writing.

The consultation will remain open for responses until 18:00 London time on 2 February 2026.

The full document can be downloaded here.