The United Kingdom’s withdrawal from the EU 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.
LME Group’s priority throughout its Brexit planning programme has been its commitment to ensuring continued access to its clearing and trading systems for all its members globally. LME Group is well placed to deliver on this commitment irrespective of the outcome of on-going discussions in Westminster and Brussels.
LME Clear has been granted the recognition from ESMA which is needed in order for it to be able to continue providing clearing services to its EEA members after Brexit. This takes account of the revised date, and any future revisions, of the UK’s withdrawal.
Trading venue licences
The post-Brexit authorisations required for the LME in the Netherlands and Germany have now been granted. No additional regulatory obligations exist which would require the LME to hold licences or exemptions in other EEA states where it currently has members, or where members have indicated they will seek to access LME systems in the future.
Trading venue equivalence
The UK has not, as yet, been deemed an equivalent third country by the European Commission in relation to the regulatory framework to which trading venues are required to comply. This means LME contracts may be considered as “OTC” under EU law which could, in turn, impact the regulatory obligations with which some members and market participants are required to comply. The LME continues to advocate for a timely resolution to this matter.
We welcome engagement from all those with interest in our market. Please direct any enquiries via email or your usual LME contact.