Yes. Material held on LMEshield is not being used to physically settle LME contracts and this means a wider variety of specifications of metal can be held on the LMEshield system. However, if the material held on LMEshield does not meet LMEsword requirements, this material cannot then be warranted. Quality and brand of material held on LMEshield receipt is determined by both the warehouse and metal owner bilaterally. LMEshield allows for Certificates of Analysis to be attached to, and transferred with, the LMEshield receipt. The current eligible commodities are listed here.
As every LMEshield receipt has the same format and legal foundation, there is a standardisation of warehouse receipts across multiple warehouse locations, companies and jurisdictions. This allows users of LMEshield receipts to have a greater level of confidence, even when using LMEshield receipts in warehouse companies and locations they may not have used before.
Additionally, LMEshield can help to reduce couriering costs that businesses incur from delivering paper receipts as the system uses electronic receipt transfer, with the paper receipt being immobilised in the LME depository.