LME Clear: Clearing and Settlement Services for London Metal Exchange Trades

What is LME Clear?

LME Clear is a central counterparty (CCP) that provides clearing and settlement services for users of the London Metal Exchange (LME) on all Ring electronic and telephone trades.

LME Clear provides:

• Clearing: LME Clear acts as the buyer to every seller and the seller to every buyer, eliminating counterparty risk.
• Settlement: LME Clear facilitates the physical delivery of metal or cash settlement of contracts.

What is the London Metal Exchange (LME)?

The LME is the world's largest exchange for industrial metals. It is a marketplace where buyers and sellers of metals such as aluminum, copper, and zinc can trade futures contracts (agreements to buy or sell a commodity at a set price on a future date).

The LME was founded in 1877 and is headquartered in London, England. It is a member of the World Federation of Exchanges and is regulated by the Financial Conduct Authority (FCA).

What are the benefits of using LME Clear?

There are several benefits to using LME Clear, including:

• Reduced counterparty risk: LME Clear eliminates the risk of a counterparty defaulting on a trade.
• Increased efficiency: LME Clear's automated clearing and settlement process reduces the time and cost of settling trades.
• Improved transparency: LME Clear provides real-time clearing and settlement data, which increases transparency in the metals market.