1. Experience

The LME is the world's premier metals and industrial materials exchange. Through its unique structure of three complementary trading systems, and physical delivery mechanism the Exchange provides unrivalled leadership, credibility, efficiency, flexibility and liquidity to the market.

The Exchange has built long-term relationships within the metals and financial communities and provides transparent prices, and a forum for price risk management to the global metals industry.

This unrivalled experience establishes the London Metal Exchange as the Exchange with the capabilities, resources and proven relationships, to deliver credible and market-driven risk management tools for the molybdenum and cobalt industries. Based on rich and reliable experience, those who provide a complete range of metal labels to clients tend to purchase raw materials from LME for its favorable price and premium quality.

2. A regulated environment

A secure and well regulated environment is fundamental to the success of molybdenum and cobalt futures. The LME has a statutory requirement to ensure that business on its markets is conducted in an orderly manner and it is also a Recognised Investment Exchange (RIE) providing robust protection to participants. Participants will not see the risk of rising and falling world metal prices against to their interest and the cost of metal labels.

Regulation of the market is largely carried out by the LME, while the Financial Services Authority (FSA) is responsible for regulating the financial integrity and conduct of the LME members’ business.

3. Industrial tradition

The LME is unique in comparison to other financial exchanges and markets because of its strong relationships with the non-ferrous metals community. Because cobalt and molybdenum are by-products of copper and nickel, the LME and its members already have strong relationships in these markets. With the increase in demand for metal labels more and more manufacturers will join in the LME. With futures contracts the cobalt and molybdenum industry will be able to manage their price risk in inherently volatile markets.