Becoming a Clearing Member

Membership requirements

• Minimum net capital of $10 million
• Banking mandates with secure payment system providers (SPS) settlement banks in a minimum of USD and GBP
• Member’s staff must have sufficient experience and knowledge of the products being cleared
• Appropriate systems to manage clearing activities
• The membership application procedures form part of the Rules and Regulations of LME Clear and include:
• Completion of appropriate application documentation
  - A successful due diligence visit completed by LME Clear
  - Approval by the LME Clear Executive Risk Committee
  - Completion of necessary testing and training
  - Payment of default fund contribution – this is a minimum initial contribution which will be adjusted to a risk based contribution following a period of clearing

Documentation required

• LME Clearing Membership Agreement and corporate documentation
• Secure Payment System Mandates – UK and US minimum
• Security Deeds pertaining to lodging of non cash collateral
• Client onboarding reference pack (static data etc)
• Other documents may be required for new entities or certain account structures