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risk management

Risk document library

Please see our list of presentations and documents relating to the LME Risk Management and Default Procedures.

Risk management overview

Margin Collateral Framework

Default Management

Operational Risk Management

Backtesting

Credit Risk Assessment Framework

Default Fund

Liquidity and Investment Risk

Margin Methodology

Anti-Procyclicality Framework

LME Clear FSB continuity of access to FMIs

Default management

This document describes the processes LME Clear will follow during a default and contains key information for both clearing members and clients. 

Member and Client Default Management Framework

Disclosure

LME Clear Disclosure under EMIR Art.39 (7)

LME Clear CPMI IOSCO Disclosure Document 2020

FAQ 

Summary of frequently asked questions.

LMEC Risk FAQ

Margin calculations

This document describes how SPAN is used to calculate portfolio risk for options and futures. It also provides the format of the SPAN risk parameter file.

("SPAN" is a registered trademark of Chicago Mercantile Exchange Inc., used here under license. Chicago Mercantile Exchange Inc. assumes no liability in connection with the use of SPAN by any person or entity).

SPAN Initial Margin Calculation

Example calculations on initial margin for LME Base contracts

LME Base Metal Margin Calculation

Example calculations on initial margin for LMEprecious contracts

LMEprecious Margin Calculation

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