Warrants as collateral

LME Clear has expanded its existing collateral service to Clearing Members to accept Warrants as Collateral against margin requirements.

This service represents an improved efficiency for the marketplace, and, in certain circumstances, serves as a natural hedge against cleared positions and therefore be risk reducing. 

For phase 1, warrants of a metal can only be accepted as collateral for the underlying metal i.e. Aluminium warrants will be acceptable as collateral to cover Aluminium positions.

A short briefing regarding this service can be found here.

Please note the proposed changes only affect those that plan to use the new optional service. Current Rules and Procedures are otherwise not impacted. For those that use the service, additional Rules will be added to the Rulebook in due course.


LME Clear is also updating its EMIR Article 39(7) disclosure statement, available on the disclosure and transparency page

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