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) enters the details of each transaction into LMEsmart as soon as possible, after the deal is struck
- LMEsmart compares both inputs
- Any discrepancy will result in a 'mismatch'. The two dealing firms will need to clarify and correct the error as required.
- If all details are correct the deal is matched and passed through for clearing.