Following the formal adoption on 19 December 2018 by the European Commission of an equivalence decision in relation to the UK, LME Clear is pleased to confirm that it appears likely that it will be able to continue to provide clearing services to all members following the UK’s withdrawal from the European Union. Accordingly, LME Clear does not propose issuing a notice of service withdrawal in relation to the provision of clearing services for any of its members. As a result of the publication of this equivalence decision, ESMA is now able to formally process an application for recognition from LME Clear. LME Clear has therefore prepared an application under EMIR Article 25 and is engaging with ESMA on preparatory work to achieve recognition as a third country CCP.
LME Clear reserves its right to take such actions as may be necessary, as permitted by its Rulebook, should there be any material changes in circumstances or should it become apparent that there will be legal or regulatory impediments to the continued provision of clearing services to any of its members. This includes, but is not restricted to, the situation where LME Clear has not been granted recognition by ESMA.
The United Kingdom will leave the European Union on 29 March 2019. Brexit will introduce an unparalleled level of regulatory, legislative and political change to the whole of the UK having an impact on all sectors of the economy.
The London Metal Exchange (LME) and LME Clear are working hard to ensure that our Brexit contingency plans are comprehensive, robust and sufficiently flexible so that we will remain a global market accessible to all members and participants.
Our Brexit contingency plans are built on the following key objectives:
Whilst the timing and form of the UK’s departure from the EU remain subject to negotiation, the LME and LME Clear will continue to provide clear and up-to-date information concerning the steps that we will be taking as part of our contingency arrangements and we will use this portal to fulfil that commitment.
We welcome engagement from all those with interest in our market. Please direct any enquiries via email or your usual LME contact.