The LME said that options can be traded either as volatilities - in which case the counterparties are given an automatic delta hedge - or, as in premiums, through a specific quote request facility. In total, LME Select can offer more than 7,000 variants of its non-ferrous metals futures and traded options contracts.
The system also gives member firms automatic matching and clearing through an interface with the London Clearing House.
Thirty-three member firms are connected to LME Select. They can also execute trades in traditional open-outcry ring trading and the telephone.
"In recent weeks, the Exchange has received the go-ahead to trade LME Select in Japan and South Africa. Some members have already installed the system in their US offices and are trading from there. We expect to receive regulatory approval from other countries over the next few months," said Simon Heale, LME chief executive.
"The introduction is only the first phase. Now we must ensure that we continue working with our members so that they are able to get the most out of it, and that it becomes the screen trading system of choice in our market," he added.