The London Metal Exchange has launched a Cleared Average Price Swap (Caps) service, offering a monthly average price swap settled in cash against the exchange's underlying non-ferrous meta

The London Metal Exchange has launched a Cleared Average Price Swap (Caps) service, offering a monthly average price swap settled in cash against the exchange's underlying non-ferrous metals contracts. They will be accessible to category 1 and 2 members only.

Caps contracts will be available for the exchange's eight non-ferrous metals: Primary Aluminium, NASAAC, Aluminium Alloy, Special High Grade Zinc, Tin, Nickel, Copper Grade A and Standard Lead.

Emma Davey, the exchange's membership and business development manager, says: 'The launch of the Caps service is a new development in the LME's expansion of service offerings to its members. This service is the first step in the exchange's plans to provide greater efficiency in post-trading of our core metals products.

'Cleared average price swaps will allow category 1 and 2 members to put their member-to-member transactions through to clearing at LCH Clearnet, with the resulting advantages of a central counterparty.'