LME Clear has treasury systems in place that ensure the timely and secure movement of payments in adherence with EMIR and ESMA guidelines, most notably those regarding liquidity and security.
Secure Payment System (SPS)
The Secure Payment System (SPS) is operated by LME Clear and ensures the secure and timely transfer of funds between Clearing Members and the Clearing House. SPS is designated by the Bank of England as an assured interbank payment system in accordance with the Settlement Finality Directive and is the only business as usual method LME Clear employs to exchange funds with its Members.
Every Clearing Member is required to maintain at least one SPS bank account in USD, covering the potential for transactions both in the European and US time zones, and one in GBP to be used on USD currency holidays.
Members must have a subsequent account in each currency in which they incur settlements. Clearing Members are free to use different banks for different currencies and different accounts for their client accounts also.
Members can choose to use all four acceptable currencies or only USD for cover purposes. All calls will be made in USD, aside from US holidays where margin is called in GBP, and pre-funding can be made in other currencies.
Participating Settlement Banks