Rules and regulations

The Rules have been developed in accordance with the following principles:

• To reflect the operational design of LME Clear
• To reflect the legal framework which will apply to LME Clear at launch, including primarily the requirements of the new European Market Infrastructure Regulation ("EMIR") that apply to central counterparties
• To be clear and user friendly.

The Rules are made up of (i) twelve Rules, (ii) four Procedures and (iii) a number of Annexes. The twelve Rules set out the main rights and obligations of LME Clear and the Members. The Procedures supplement, and form part of, the Rules by setting out the detailed operational processes.

The Rules (including the Procedures and Annexes) are legally binding on Members. Material amendments will be subject to a formal consultation process, unless certain exemptions apply. For example, LME Clear will not be required to consult on changes to the content of the annexes.

The Rules are also supplemented by operational documents such as the Detailed service specification which is not legally binding.