Shorter Dated Prompts for LME Plastic Contracts

The LME have asked LCH.Clearnet to undertake work on the LME Matching and Clearing System and related systems in relation to additional prompt dates for LME Plastics contracts.

The current plastics contracts have monthly prompts, with trading during the current month for delivery the following month, i.e. in October 2006, November 2006 was being traded. The prompt date itself is the 3rd Wednesday of the delivery month. In October 2006, therefore, Wednesday 15th Nov was the nearby prompt date.

The new prompt date structure will be identical to metals with:

• Tradable prompts to be introduced for every day up to three months forward on a rolling basis;

• Next business day (trading today for settlement tomorrow – aka Cash Today or “TOM”);

• Cash (trading today, with settlement in 2 business days);

• Weekly tradable prompts to be introduced for every Wednesday from months 3 to 6; and

• Monthly tradable prompts to be introduced for every third Wednesday of the month for months 7 to 15;

• The Cash price will be published as an Official Price together with the first and second month prices (basis the third Wednesday).