31 August 2016
Find out more

LME Clear receives Emir authorisation

03 September 2014  |  1593 views  |  0 Source: LME

LME Clear, the new clearing house of the London Metal Exchange (LME), today announced that the Bank of England has approved its application as a central counterparty under the European Markets Infrastructure Regulation (EMIR). LME Clear's authorisation takes effect on 3 September 2014.

The Bank's decision followed a positive opinion reached on 28 July 2014 by a college of regulators and central banks from France, Germany and the UK.

"This is exciting news for LME Clear. Authorisation means that our risk management framework, governance, capital, client account structures and operating model all meet the high standards required under EMIR," said Trevor Spanner, CEO of LME Clear. "It's the last significant milestone on the path to our launch."

As an authorised clearing house LME Clear will be a qualifying central counterparty (QCCP) under Basel III/CRD IV. Financial firms clearing with a QCCP are subject to significantly lower capital requirements compared to a non-QCCP.

"As a new entrant in this space we had no legacy systems and processes. LME Clear has been able to take an innovative and inclusive approach to clearing based on cutting edge technology and the advice of LME Members. We've focused on giving them more control over how they manage their LME business including enhanced option expiry handling and enabling them to view their risk position in real time," said Spanner.

LME Clear will initially clear all trades on the LME and those matched on the OTC matching service. Members will be able to interact with the new service in real time, benefitting from straight-through processing, integrated collateral management and comprehensive reports.

"Authorisation is a key step towards launch. LME Clear gives us greater control of our destiny - particularly with regard to the speed and flexibility of product launches," said Charles Li, HKEx Chief Executive. "HKEx has made a significant investment in LME Clear and we expect it will make immediate and long-term revenue contributions to the HKEx Group."

LME Clear is scheduled for launch on 22 September.

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit equens.comVisit capgemini.comVisit www.smartstream-stp.com

Top topics

Most viewed Most shared
India's Unified Payments Interface goes live with 21 banksIndia's Unified Payments Interface goes li...
9467 views comments | 23 tweets | 26 linkedin
Cultural change crucial in digital transformationCultural change crucial in digital transfo...
6982 views comments | 11 tweets | 10 linkedin
R3 blockchain consortium sheds light on Concord projectR3 blockchain consortium sheds light on Co...
6818 views comments | 15 tweets | 14 linkedin
Mondo becomes MonzoMondo becomes Monzo
6498 views comments | 14 tweets | 9 linkedin
hands typing furiouslyBlockchain: Some Remarkable Announcements!
6264 views 0 | 5 tweets | 14 linkedin

Featured job

Find your next job