The Rules have been developed by LME Clear and The London Metal Exchange ("LME") together with external legal counsel.
The Rules have been developed in accordance with the following principles:
- To reflect the operational design of LME Clear
- To reflect the legal framework which will apply to LME Clear at launch, including primarily the requirements of the new European Market Infrastructure Regulation ("EMIR") that apply to central counterparties
- To be clear and user friendly.
The Rules are made up of (i) eleven "Rules", (ii) four "Procedures" and (iii) a number of "Annexes". The eleven Rules set out the main rights and obligations of LME Clear and the Members. The Procedures supplement, and form part of, the Rules by setting out the detailed operational processes.
The Rules (including the Procedures and Annexes) are legally binding on Members. Material amendments will be subject to a formal consultation process, unless certain exemptions apply. For example, LME Clear will not be required to consult on changes to the content of the annexes.
The Rules will also be supplemented by operational documents which will not be legally binding.
View Rule Book and Procedures
Qualifying CCP Status
LME Clear is required to publish certain additional information to its member firms because of its Qualifying Central Counter Party (QCCP) status. This information is available to employees of member firms by requesting additional acesss to the LME website.
Settlement Finality Orders
In relation to the Financial Markets and Insolvency (Settlement Finality) Regulations 1999, Regulation 22 the court is considering revising its Insolvency Proceedings Practice Direction and has requested that system operators provide clear information on their websites setting out how contact with them can be made.
Orders issued by the court should be sent to LMEClearlegal@lme.com
LME Clear Proposed Rule Changes
Please see link below for the proposed LME Clear rule changes sent 24 November 2016. The proposed amendments are in respect of open offer, LME precious, flex and miscellaneous. Consultation ends 13 January 2017. Please see circular 16-039 for further details.
LME Clear Proposed Rule Changes - Mark up against current rulebook
On the 27th March LME Clear will also introduce the following rule changes notified to Members in circular 17-011 regarding the default fund additional margin threshold. A mark-up of the changes can be found on the link below.
LME Clear Rulebook – Default Fund Buffer mark-up rulebook