What savings in initial margins are given by LCH.Clearnet on inter-commodity spread positions where one ‘leg’ is on the LME ‘parent’ contract and the opposite ‘leg’ is on the LMEmini contract for the same metal?
LCH.Clearnet will allow an amount of inter-commodity credit between the LME parent contract and the LMEmini spreads. This credit will reduce the initial margin for both contracts. Please refer to Portfolio 3b note 3 in the working examples of LMEmini initial margining download.
Click here to download working examples of LMEmini initial margining.
