Silver clearing facilitation services
Members of the London silver market trade with each other and with their clients on a principal-to-principal basis. This means that all risks, including those of credit, are between the two counterparties to a transaction.
The LME has entered into a joint venture with LCH.Clearnet to offer clearing facilitation services for the London OTC silver markets.
The existing physical settlement processes of the loco London silver market, via London Precious Metals Clearing Ltd (LPMCL), remain unchanged.
The central counterparty, LCH.Clearnet, will clear loco London silver trades:
- Priced in USD
- With a minimum price fluctuation of USD 0.001
- A weight in multiples of 5000 troy ounces
- With daily tenors (excluding London and New York bank holidays) up to a maximum of 36 months.
Settlement is by delivery of loco London unallocated silver.
Precious metals prices
The London Bullion Market Association (LBMA) has appointed the LME to promote, market and distribute its silver forward rates and spot prices at 17.00 UK time. These rates and prices are provided by the LBMA key silver market makers and are used by LCH.Clearnet for daily variation margins in the clearing of these OTC transactions.
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