The exchange's board is set to vote on the plans within the next three months. The LME already trades cash contracts and futures for non-ferrous metals and plastics.
Abbott denied that he was preparing for a sale of the exchange: "There is no 'for sale' sign over the LME. As far as I am aware, none of my shareholders is asking me to take the exchange down that route," he said.
Both the Chicago Board of Trade and the New York-based Nymex have been named by analysts in the past several months as possible merger partners.