The London Metal Exchange (LME) has unveiled its Options Roadmap, outlining plans to modernise its options market and boost liquidity through automation and electronic trading.
LME Publishes Roadmap to Modernise Options Market
The roadmap’s top priority is to implement an automated expiry process and shift from American-style to European-style options, with a market consultation expected later this year.
The LME aims to deliver the automation upgrade in the second half of 2026, subject to regulatory approval.
In parallel, the exchange plans to launch electronic premium-quoted options (PQO) on its LMEselect v10 platform, which went live earlier this year.
The initial rollout is expected to include mass quoting functionality, market maker protections and a liquidity provider programme to enhance on-screen activity.
The roadmap is said to be “grounded in stakeholder feedback and reflects our commitment to iterative delivery,” said the LME.
Subsequent enhancements will include complex strategy tools, variable tick sizes and an updated closing price methodology.
The LME is also exploring potential market structure changes, such as block trade thresholds and short-dated options, though no immediate plans have been set.
The initiative aims to make the LME’s options market more accessible, transparent and competitive with global peers, as options volumes remain relatively low compared with futures trading.
