LMEshield
Secure and effective commodity receipting
LMEshield is our central electronic register providing global off-warrant commodity receipting.
Delivering efficient inventory management, LMEshield is founded in the LME’s extensive experience in overseeing a global warehousing network.
By immobilising paper receipts and using electronic versions in the system, LMEshield supports and enables lending by addressing uncertainties surrounding commodity receipts as collateral and reducing the risk of fraud on financed material.
The benefits
Purpose built in consultation with market participants, LMEshield is designed to:
- improve confidence in global off-warrant warehousing
- help mitigate the risk of fraud
- enhance efficiency of transfer of ownership
- support and expand the market for financing of off-warrant commodities.
Metal Bulletin hosted a webinar on LMEshield and commodity financing. Watch the presentation.
For more information or to request a demo of the system please get in touch with our team.
Who is it for?
LMEshield is designed to cater to the needs of commodity market participants across the value chain.
For banks and financing institutions - LMEshield facilitates effective collateral management by promoting commodity storage standards, tracking the underlying commodity and efficiencies in financing processes.
Warehouses and commodity storage facilities - LMEshield provides rent recording functionality and efficient processes for creating warehouse receipts.
Physical commodity traders and owners - LMEshield helps to improve access to trade financing deals and increase speed and efficiency in the transfer of receipt possession.
Experience
LMEshield is developed based on our extensive experience in metals trading, oversight of warehousing standards and the management of ownership documentation through LMEsword, the LME’s warrant management system accounting for millions of tonnes of metal around the world.
In partnering with Kynetix, the global leader for financial technology solutions in the physical markets, we are uniquely qualified to bring a more secure and efficient receipting system to the wider market.
Eligible Jurisdictions/Regions
LMEshield receipts can be issued in respect of the Eligible Commodities stored in the following Eligible Jurisdictions/Regions:
| Eligible Jurisdictions/Regions | ||
|---|---|---|
| Belgium | Qatar | USA (California) |
| Brazil | Saudi Arabia | USA (Florida) |
| Chile | Singapore | USA (Illinois) |
| England and Wales | South Africa | USA (Indiana) |
| Germany | South Korea | USA (Kentucky) |
| India | Spain | USA (Louisiana) |
| Italy | Sweden | USA (Maryland) |
| Japan | Taiwan | USA (Michigan) |
| Malaysia | UAE | USA (Missouri) |
| Netherlands | USA (Alabama) | USA (Ohio) |
LMEshield Eligible Commodities
| Eligible Commodities | ||
|---|---|---|
| Aluminium alloys | Lead |
Steel |
| Cobalt |
Molybdenum | Tin |
| Copper |
Nickel |
Zinc |
| Lead |
Primary aluminium | |
Warehouse & facilities
LMEshield approved warehouses and storage facilities:
| Warehouse | Jurisdiction/Region | Location | Facility | Status |
|---|---|---|---|---|
| Henry Bath | Belgium | Antwerp | Kallo - Blockveld |  |
| Vollers Group GmbH | Belgium | Antwerp | Christa | |
| CWT Commodity Logistics Rotterdam B.V. |
Belgium | Antwerp | Berendrecht | |
| Vollers Group GmbH | Germany | Hamburg | R1 | |
| Henry Bath | Malaysia | Johor | Warehouse JBD1 | |
| CWT Commodity Logistics (S) Pte. Ltd. | Malaysia | Johor | CWT Johor | |
| Henry Bath | Netherlands | Rotterdam | Antarcticaweg Warehouse F |  |
| Henry Bath | Netherlands | Rotterdam | Dolfijnweg | |
| Independent Commodities Logistics B.V. | Netherlands | Moerdijk | Warehouse 1 | |
| Independent Commodities Logistics B.V. | Netherlands | Moerdijk | Warehouse 2 | |
| Independent Commodities Logistics B.V. | Netherlands | Moerdijk | Compound CCT West | |
| Henry Bath | Singapore | Singapore | Sembawang Wharves Singapore | |
| Henry Bath Singapore PTE LTD | South Korea | Busan | Sebang Gamcheon Warehouse | |
| Henry Bath Singapore PTE LTD | South Korea | Busan | SBNL A | |
| Henry Bath Singapore PTE LTD | South Korea | Gwangyang | Gwangyang A | |
| Metro International Trade Services (UK) Ltd | South Korea | Incheon | 5636 - Warehouse 4 | |
| Metro International Trade Services (UK) Ltd | South Korea | Incheon | 5753 - Warehouse 7 | |
| P Global Services NV | Spain | Barcelona | PGSBA1 | |
| Halley Metals Iberica, S.A | Spain | Bilbao | Warehouse 4B | |
| CWT Commodity Logistics (S) Pte. Ltd. . | UAE | Dubai | CWT Dubai | |
| Henry Bath | UK | Liverpool | South Huskisson | |
| Metro International Trade Services LLC | USA | Chicago | 4824 - 345 Salmon Drive | |
| Metro International Trade Services LLC | USA | Detroit | 4790 - 13542 Helen Street | |
| Metro International Trade Services LLC | USA | Detroit | 4792 - 308 Antoine Street | |
| Metro International Trade Services LLC | USA | Detroit | 4793 - 308 N. Antoine Street | |
| Metro International Trade Services LLC | USA | Detroit | 5714 - 1200 E. McNichols Ave | |
| Metro International Trade Services LLC | USA | Detroit | 5716 - 1725 Cicotte Avenue | |
| Metro International Trade Services LLC | USA | Detroit | 5820 - 160 Visger Rd | |
| Metro International Trade Services LLC | USA | Mobile | 5674 - 1505 Telegraph Road | |
| Metro International Trade Services LLC | USA | Mobile | 5679 - 1200 Papermill Road | |
| Metro International Trade Services LLC | USA | Mobile | 5745 - 200 Callahan Drive | |
| Metro International Trade Services LLC | USA | Mobile | 5880 - 1818 S. Craft Highway | |
| Metro International Trade Services LLC | USA | New Orleans | 5049 - 500 Louisiana Avenue | |
Please note additional Warehouse Companies are in the final on-boarding stage and will be announced shortly.
Talk to us today about how to become an LMEshield-approved facility, or if you are a trader or financial institution that works with a warehouse company not yet on the system, get in touch to see how we can help.
LMEshield - annual custody fee
LMEshield will charge an annual custody fee for LME delivery point and non-delivery point jurisdictions.
| Annual custody fee | Fee (basis points) |
|---|---|
| Delivery point jurisdictions |
1 |
| Non-delivery point jurisdictions | 5 |
Metal registered on LMEshield will be classified within a specific metal type (e.g. aluminium, copper) and charged based on the metal's previous month's LME’s average cash price. Fees will be calculated pro-rata on a monthly basis in arrears using the daily closing tonnage by metal and by jurisdiction.
Contact Us
For further information please get in touch.