Date
17 July 2008                                                           

Course Outline

The course is designed to introduce a market which has been long-established, but is still surrounded in mystery. Investment fund involvement has grown dramatically over the past five years and the need for a greater understanding of the Exchange has likewise grown.

Covering all aspects of Exchange operations, this basic but complete course will impart a broad knowledge base allowing for more detailed explanations in the future.

Many firms will benefit from this knowledge as although they themselves may not be directly operating in this market, their clients may well be.

Course Content

Understanding the basics
History and development of the Exchange
LME Contracts
Futures, options and the relationship with the physical metal world
Market terminology
Contango
Backwardation
Carries
Other unique terms
Types of LME member
Customer groups (fund, commercial and dealers)
LME options
Warehousing

Trade transparency
Open outcry, electronic and telephone trades
Advantages and disadvantages
Differences between platforms
LME policy and how it works
Composition of board and committee
Relationship with clearing house / regulatory authorities
Lending guidance

Role of a broker
Broker versus dealer
What to look for in a broker
Geographical location
Margins and credit lines

Hedging
Who hedges and why
Different types of trade customer
The basics of hedging
Advantages and disadvantages of using LME for hedging
Taking account of margin calls
Cashflow implications of hedging against physical metal positions
Delivery options and location and quality switches (premiums and discounts)

Arbitration
History of this service
Enforceability
Impact of Conventions and various Arbitration Acts
Confidentiality