To support the delivery of clearing services, LME Clear utilises a combination of internal and third party resources.
Irrespective of whether functions are internal or external to the organisation, the LME Board and Executive Committee retains ownership and management of risk and performance of the relevant service or process.
As part of any selection process, third party partners and suppliers are required to demonstrate their understanding of the requirement in their service offerings, applications, ethos and working practices.
In relation to all service providers, LME Clear has put in place (under the relevant contractual arrangements) a relationship management process which ensures that LME Clear maintains a close and continuous relationship with each of its suppliers through the appointment of key individuals representing each party as service managers.
It also ensures ongoing monitoring of the services provided through regular meetings between the service managers and the provision of reports/management information by the service providers. LME Clear has also ensured that it has the necessary expertise and resource to evaluate the quality of the services provided and to supervise the relevant services effectively.
All relationships with service providers are managed in line with the Risk Appetite Statement. Where applicable, we have robust back up arrangements in place.