The post trade services of matching and clearing are important functions of LME trading and reduces counterparty risk.
Matching starts the clearing process to reduce counterparty risk. Transaction details of a trade are compared to ensure both parties agree on the terms of the deal.
A process that helps protect both parties of the trade against default. The clearing house sits between the two clearing members who have negotiated the deal.
Self clearing at the LME
The Exchange is in the process of builiding its own independent clearing house, LME Clear.