Onboarding a new clearing member can take anything from four to twelve months to allow for documentation, operational and financial requirements.
Any timings presented are approximate and dependant on available resources at the prospective member to complete onboarding in the best possible timeframe.
All clearing members also need to be a member of the LME.
Prospective members should:
- Assign an internal project manager
- Determine which testing phases they will be participating in
- Obtain resources – operations, IT, risk, credit, legal, compliance
- Confirm account structure required
- Engage vendors (if utilised)
- Confirm any internal approvals required
- Minimum net capital of $10 million
- Banking mandates with secure payment system providers (SPS) settlement banks in a minimum of USD and GBP
- Member’s staff must have sufficient experience and knowledge of the products being cleared
- Appropriate systems to manage clearing activities
- The membership application procedures form part of the Rules and Regulations of LME Clear and include:
- Completion of appropriate application documentation
- A successful due diligence visit completed by LME Clear
- Approval by the LME Clear Executive Risk Committee
- Completion of necessary testing and training
- Payment of default fund contribution – this is a minimum initial contribution which will be adjusted to a risk based contribution following a period of clearing
In order to begin an application to LMEClear, please contact email@example.com