Before a transaction can be ‘cleared’, it must be ‘matched’. This is where details of a deal are checked to see if both parties agree on the terms of the trade. All matching takes place through the LME’s matching system, LMEsmart.
Steps for matching a trade
- Each member (the buyer and the seller) enter the details of each transaction into LMEsmart as soon as possible, after the deal is struck
- LMEsmart compares the both inputs
- Any discrepancy is referred immediately back to the two dealing firms for them to clarify and correct the error
- If all details are correct the deal is matched and passed through for clearing.