As for the contracts traded by the LME, copper contracts, if you are not familiar with the LME, most of the contracts are relatively large-scale, which is a bit larger than other exchanges. For example, steel, tin, and lead are found in large amounts. Copper was introduced in 1877 and is the largest quantity traded. The nominal amount of copper is the largest. Although aluminum was introduced in 1978, the actual amount is very large. Nickel was introduced in 1979, and silicon is on a large scale. In 2002, a contract "North American Special Aluminum Alloy Contract" was introduced. This contract was introduced to benefit the U.S. automotive industry and was mainly delivered in the United States. When considering the launch of new contracts, you must consult with the industry. You may not know the supervision of the LME. It is actually a private exchange owned by 80 shareholders. 40% of the member companies are brokerage companies, and Many financial institutions and banks own the LME. Members also come from the real economy, such as the manufacturing industry, and consumers. And each technology has a committee. At the committee level, there is a representative. This representative comes from various industry sectors, plus representatives from financial institutions, representatives from investment companies, and representatives from the metal industry. Conducted every three months. If changes to this contract cannot meet the requirements of the industry, they will be discussed and improved at the committee level and submitted to the board of directors for approval. In 2002, I felt that there should be a special contract with aluminum alloys. The LME index is an index of six major traded metals, copper, aluminum, zinc, lead and nickel, which are published daily. The LME mini contract was launched in 2006, mainly for copper, aluminum and zinc. In 2008, there was a copper billet contract.

This is an introduction to the contract. Among the three services of the LME, hedging is the most important, especially for China. Hedging has also been very important for many years, and the LME has maintained a long-term partnership with China Basic Trade. The LME price serves as a benchmark for trading behind the line. Take a look at the trading platform. The LME has three trading platforms. One is electronic trading, which will be introduced in detail later. It opens at eight o'clock in London time, nine o'clock in winter, and the trading day starts until seven o'clock in the evening London time, and the trading day ends from this trading time. Telephone options trading, as well as large-scale project financing transactions. In front of OTC trading, I saw live bidding on the floor. Europe still has this method, and CME also has this kind of floor trading in the United States, which is part of our day's trading, because floor trading is very important. For floor trading, the formal price will be set in the second quarter of the morning.

Compared with other exchanges, how to use LME for basic hedging. First of all, the LME has no venue restrictions. There are no restrictions on futures positions. There may be some restrictions on inventory. The position must exceed 50% of the inventory. Certain rules must be followed to ensure that this inventory is not manipulated. Futures positions are regulated, but there are no restrictions on positions and there are no restrictions on prices. There are not many restrictions on prices. Telephone trading is 24 hours a day. Most LME members are brokerage companies with offices in various cities and time zones. Many brokerage companies have their own offices in Singapore, Hong Kong, and Shanghai. Their time zones For transactions, there is always a price within 24 hours. We will access through LME member companies. You do not need to be a member of LME to trade. You must open an account for members through our members to trade. Now let's look at the growth of electronic trading, because in the Asian market, the development of electronic trading is now being promoted. Obviously this is also the global electronic trading market. Seeing that in the Asian region, electronic trading can be said to be in the ascendant. There is an LME trading system that is 23% year-on-year, which is the year-on-year growth rate so far. In 2001, the electronic trading system was launched. It was not very popular in the first few years. Starting in 2008, this electronic trading system developed rapidly.