Frequently Asked Questions: Lead Futures Contract

  • 19 Nov 2015
  • By CME Group
  • Topics: Metals

What is the contract symbol for the Lead futures contract?

The contract symbol is LED.

What are the benefits of this new contract to the individual?

  • Physically-delivered monthly futures contract
  • True intraday price and spread transparency across the futures curve
  • Security through centralized clearing, guaranteed counterparty credit, and segregation of customer funds through CME Clearing
  • Easily accessible electronic execution
  • Streamlined delivery process
  • Daily mark-to-market of positions
  • U.S. and international delivery points

What are the contract specifications?

The contract size for the Lead futures contract is 25 metric tons. The contract is priced in U.S. dollars per metric ton. The contract is listed for trading on CME Globex and via CME Direct, and for clearing through CME ClearPort. Contract will be listed 12 consecutive months. Minimum price fluctuation is $0.50 (value per tick is $12.50). Delivery locations are in the United States and Europe. For more information about the contract specifications, visit cmegroup.com/metals.

Why has CME Group launched this new contract?

The introduction of this new Lead futures contract is another example of how we’re working closely with customers across the commodities value chain to provide innovative solutions they can use to hedge volatile industrial metals prices. This new contract builds on CME Group’s already broad array of global benchmark metals products and our growing base metals offering.

Who can use this contract?

The contract is most relevant to lead market participants across the supply chain, including miners, producers, distributors, merchants, traders, end users, and banks. Physically-settled contracts are a preferred hedging tool by commercial users in the lead industry. Investors and liquidity providers may also use this contract as arbitrage opportunities or to manage price exposure.

How do I trade the contract?

LED will be available to trade on CME Globex and via CME Direct, our free front-end trading platform for accessing CME Group markets. CME Globex operates as a Central Limit Order Book, or CLOB. LED will also be available for clearing on CME ClearPort for privately-negotiated trades.

What are CME Globex and CME Direct?

The CME Globex platform was the first, and remains among the fastest, global electronic trading systems for futures and options. Through its advanced functionality, high reliability, and global connectivity, it is now the world’s premier electronic marketplace for derivatives. To learn more about CME Globex, visit cmegroup.com/globex. Delivered securely across the Internet, CME Direct is a highly configurable trading front-end for CME Group markets that offer a complete suite of solutions across the trading lifecycle. To learn more about CME Direct, CME Group’s free, front-end trading platform, visit cmegroup.com/direct.

What is CME ClearPort?

CME ClearPort is a comprehensive set of flexible clearing services for the over-the-counter (OTC) market. Launched in 2002 to provide centralized clearing services and mitigate risk in the energy marketplace, CME ClearPort today serves as a gateway for transactions in a diverse slate of asset classes submitted for clearing. With OTC clearing through CME ClearPort, you can continue to negotiate your own prices privately and conduct business off-Exchange – but you gain increased security and efficiency.

To register for clearing through CME ClearPort, you must establish an account with a COMEX Clearing Member and complete the Exchange User License Agreement (EULA) available at cmegroup.com/clearport.

Once you have received your username and password, contact your Clearing Member Firm and request that your clearing account be added to Risk Allocation Value (RAV) Manager. For more information about clearing member firms, please visit cmegroup.com/tools-information/clearing-firms.html.

How do I find out more about LED?

For more information about LED, visit cmegroup.com/lead or email metals@cmegroup.com


CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Chicago Mercantile Exchange, andGlobex are trademarks of Chicago Mercantile Exchange Inc. ClearPort, New York Mercantile Exchange and NYMEX are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. The information within this fact card has been compiled by CME Group for general purposes only. Although every attempt has been made to ensure the accuracy of the information within this brochure, CME Group assumes no responsibility for any errors or omissions.

Lead futures are listed with subject and to the rules and regulations of COMEX. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT, and NYMEX/ COMEX rules. Current rules should be consulted in all cases concerning contract specifications.

Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. All examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience.