Search the LME Home Trading Contract types Monthly Average Futures Contract types Monthly Average Futures FAQs QUICK ACCESS Futures Options TAPOS Trade at settlement HKEX London Minis LMEminis Hedge against the monthly average, in one simple trade. Monthly Average Futures (formerly LMEswaps) are designed specifically for members of the metal community who need to hedge against the monthly average price. They are the first of their type in the world to be traded on-exchange and available for all LME non-ferrous metals. Tradable on LMEselect and the 24-hour telephone market, Monthly Average Futures (MAFs) enable participants to enter into a fixed price and settle the difference against the floating price (the Monthly Average Settlement Price or MASP) at the end of the averaging period – all in one simple trade. We recently added (see Member Notice 17/213) second business day prompt dates to the parent contracts to extend MAF and LME futures pairs trading from three months out, up to two years out. Contract specifications LME Aluminium LME Aluminium Alloy LME NASAAC LME Copper LME Lead LME Nickel LME Tin LME Zinc What is a MAF? A Monthly Average Future is an on-exchange contract between two parties where the cash difference between the agreed fixed price and the floating Monthly Average Settlement Price (MASP) is financially settled at the end of the averaging period. The contracts provide the same economic benefit of a standard ‘swap’ where two parties agree to swap a fixed known price for a floating variable price over an agreed period. In the case of Monthly Average Futures, the fixed price is financially settled for difference against the floating average price. Monthly Average Futures are tradeable for all LME non-ferrous metals and margined basis the Notional Average Price (NAP) and settled basis the MASP on the last trading day of the averaging month. Payment of profits and losses on the difference between the fixed price and the MASP will be made on the second valid business day of the month. A Monthly Average Future does not have to be ‘closed out’ like a futures contract and there is no possibility of physical delivery. How MAFs work Example: Party who wishes to buy at fixed price asks for Monthly Average Futures quote for March 2012 Monthly Average Futures quote is $2000 - 2010 per mt Party agrees to buy at the fixed price of $2,010 per mt and settle this financially at the Monthly Average Settlement Price (MASP) of the last business day of March If the MASP settles higher than $2,010, the party receives the difference. If the MASP settles lower than $2,010 the party pays the difference. Contact us For further information please get in touch. Contact us Resources Key information documents Monthly Average Futures pricing explained Monthly Average Futures brochure (PDF) Averaging Solutions brochure (PDF) STAY UP TO DATE Register with LME.com Receive full access to all our price data and gain access to our monthly LME newsletter, packed with market tips and insights from our on-staff specialists. Register now Metals Trading Clearing Market data Physical services About About the LME Committees Governance Corporate Business continuity FAQs Regulation LME Rulebook (Download) LME Clear Rulebook (Download) Guide to market structure (Download) Market regulation Benchmark regulation Pre-trade transparency Brexit Rules Arbitration Responsibility Responsible sourcing Sustainability Conduct Diversity and inclusion Charity Corporate disclosure CONTACT US London +44 (0)207113 8888 10 Finsbury Square London EC2A 1AJ Singapore +65 6535 5035 9 Battery Road #07-02 MYP Centre Raffles Place Singapore 049910 Register Log in Legal Privacy statement Cookie policy Modern slavery statement Website T&C's Email disclaimer Cyber security awareness © 2021 The London Metal Exchange - an HKEX Company. All rights reserved.