The London Metal Exchange (LME) has selected Citi, Bank of America Merrill Lynch and J.P. Morgan as key providers of financial infrastructure to LME Clear, its self-clearing platform.
Citi will facilitate the LME Clear Secure Payment System. It will provide concentration bank services, processing receipts from members' settlement banks. Citi will also offer custodian services for the holding of fixed income collateral from members.
Bank of America Merrill Lynch will provide treasury execution services for LME Clear, securing investments with global counterparties in line with the new European Market Infrastructures Regulation (EMIR) requirements.
J.P. Morgan will act as LME Clear's gold custodian, managing member gold submitted as collateral to offset positions in LME Clear.
"In securing these three key partners, LME Clear is taking a significant step towards delivering a fully EMIR compliant clearing platform" said Trevor Spanner, MD of post trade services at the LME. "Citi, Bank of America Merrill Lynch, and J.P. Morgan all have a wealth of experience in providing services to market infrastructure and we welcome their expertise."
The building of LME Clear is well under way with the clearing platform expected to go live in 2014.