Warrants as collateral


LME Clear has expanded its collateral service for members to pledge LME warrants against their margin requirements.

This is a unique offering from LME Clear – the clearing house purpose-built for the metals market.

This service represents an improved efficiency for the marketplace, and, in certain circumstances serves as a natural hedge against cleared positions. Using LME warrants as collateral may also allow members to optimise assets on their balance sheet in a more cost effective manner.

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.

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

Disclosure and transparency

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