The London Metal Exchange (LME) has unveiled its options roadmap, which sets out plans to modernize the options market and enhance liquidity through automation and electronic trading.
The highest priority of the roadmap is to implement an automatic expiration process and shift from US style options to European style options, with market consultations expected later this year.
The LME aims to introduce the automation upgrade in the second half of 2026, subject to regulatory approval.
In parallel, the exchange plans to launch premium electronic options (PQO) on the LMEselect v10 platform, which was launched earlier this year.
The IPO is expected to include a crowd quoting function, market maker protection and a liquidity provider program to boost on-screen activity.
The LME said the roadmap “is underpinned by stakeholder feedback and reflects our commitment to iterative delivery.”
Subsequent improvements will include complex strategy tools, variable tick sizes and an updated closing price methodology.
The LME is also exploring potential changes to market structure, such as block trade thresholds and short-dated options, although no immediate plans are in place.
This initiative aims to make the options market on the LME more accessible, transparent and competitive with its global peers, as option volumes remain relatively low compared to futures trading.