Watch the webinar that took place on 21.05.24 to update members on the LME’s Juneteenth operational process.
Any positions that are due to be physically settled on 19 June 2024 ie. if there is a delivery commitment on a member's position account, this needs to be rolled.
*All examples below are per position account, per metal*
Member's position account - Net Long/Short 19 June:
- House position account - Roll the net long/short delivery commitment to 20 June 2024.
- Client position account (OSA & ISA) - taking into account all client positions within this account, roll the net long/short delivery commitment to 20 June.
- Example: client ABC Long 10 CA, client DEF Long 10 CA, client XYZ Short 25 CA, nets to Short 5 CA at a position account level. The short 5 CA position will need to be rolled to 20 June 2024. However, please note that members may need to roll individual client positions for their own books and records requirements.
If multi currency, roll the net position in USD for House and client position accounts. RVM for USD will be realised on the 20 June, all other currencies RVM realised as usual on 19 June 2024.
Member's position account - Net Flat 19 June:
- House position account - Long 50 lots AH/Short 50 lots AH do not need to be rolled. RVM for USD will be realised on 20 June 2024. All other currencies RVM realised as usual on 19 June 2024.
- Client position account - taking into account all client positions within this account, if this nets to zero then rolling is not necessary. RVM for USD realised on 20 June 2024, and on 19 June 2024 for all other currencies.
- Example: client ABC Long 15 CA, client DEF Long 10 CA, client XYZ Short 25 CA, nets to zero at a position account level and doesn't need to be rolled. However, please note that members may need to roll individual client positions for their own books and records requirements.
- House or client position account - If multi-currency and net flat, you do not need to roll the separate currency positions. RVM for USD will be realised on 20 June 2024, all other currencies RVM realised as usual on 19 June 2024.
If after the TOM deadline there are residual positions remaining for a given member (ie. Net positions across that member’s accounts leave a delivery commitment) the LME will produce a position file for that member which will then be sent out via email from the LME Relationship Management team.
Each member will then be responsible for entering their trade halves and allege against the opposite position holder member as per the file. This needs to be done within 1 hour of receipt of the position file.
Once booked the member will then need to process any remaining house/client crosses to ensure that each position account is net flat and left with no delivery commitments.
Example:
Client positions will be the responsibility of the member. Client positions can be rolled by executing one client cross carry for 19 June - 20 June, eg:
Client ABC position long 10 Copper prompt 19 June:
- Member enters client cross carry to buy 10 lots 19 June and sell 10 lots 20 June against client ABC at Level.
This is not required, assuming the position account is net flat. However, please note that members looking to roll individual client positions for their own books and records requirements should consider JPY trading deadline for prompt 19 June 2024 is COB 17 June 2024.
Positions are being rolled per position account, per metal. Any positions that need to be rolled will be in USD.
RVM for GBP/JPY/EUR will be settled on 19 June 2024 as normal.
RVM for USD will be settled on 20 June 2024.