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LME Clear selects Citi, Bank of America Merrill Lynch and J.P. Morgan to support self-clearing platform

14 March 2013

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.

~Ends~

Contact details

For further information or to speak to an LME spokesperson, please contact:

Miriam Heywood
+44 (0)207 264 5538
miriam.heywood@lme.com  

Kathy Alys
+44 (0)207 423 5803
kathy.alys@lme.com

About the London Metal Exchange

The London Metal Exchange, a member of HKEx Group, is the world centre for industrial metals trading.

More than 80% of global non-ferrous metals business is conducted on our three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options, and our latest contract, LMEswaps, to hedge against adverse price movements – prices which are discovered on our markets and used as the global reference.

Participants can trade aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt, steel billet and two regional aluminium alloy contracts. In 2013, 171.1 million lots were traded on the LME, the equivalent of 4.0 billion tonnes and $14.6 trillion in notional value.

At the close of the year, 7.4 million tonnes of material was held on LME warrant in 732 storage facilities across 37 locations internationally.