The London Metal Exchange (LME) announces that it will delist its plastics contracts and that the last prompt date for all existing contracts will be Friday 29th April 2011. The formal decision to delist was taken by the Board of the London Metal Exchange following a recommendation by the Executive Committee. This announcement follows the establishment of delisting procedures.
The Exchange has decided that the costs of withdrawing outstanding warrants from the LMEsword depository will be waived. Current open interest for all plastics contracts is 228 lots, out to March 2011.
Plastics futures trading was introduced on the LME on 27th May 2005. Despite a number of changes to the contracts and the subsequent launch of regional contracts no significant volume or open interest has been established and the exchange believes that this position is unlikely to change in the foreseeable future. It has therefore decided to focus its efforts and resources on other opportunities.
LME Chief Executive Martin Abbott commented, “The Exchange and its committee members have put considerable effort into this endeavour to bring transparency and hedging facilities to the plastic business. But we must now recognise that these efforts have not attracted sufficient volume business and the time has come to bring this activity to a close.”