With the majority of the physical contracts being priced against the London Metal Exchange (LME) and the London Bullion Market Association (LBMA) the MRI TRADING AG Hedging Department currently fixes the prices for the physical contracts using its various broker credit facilities on these exchanges. The reason for hedging the physical contracts is to minimise the exposure for all parties involved to the price fluctuation. The Hedging Department also is structured to trade with a number of LME and/or LBMA brokers that have tri-partite partnerships in place with MRI TRADING AG designated trade finance banks. A growing portion of our LME business is now conducted on a tri-partite basis, we believe this adds an aditional layer of security for MRI TRADING AG and our counter parties.