LME Clear, launched in September 2014, is the London Metal Exchange’s own clearinghouse where more than three quarters of the world’s nonferrous metal futures are traded. Annual cleared trades are valued at more than $12 trillion.
LME Clear’s clearing system LMEmercury is supplied by Cinnober, based on TRADExpress RealTime Clearing. Cinnober’s state-of-the-art technology and streamlined operations offer members real-time risk assessments calculated by multiple algorithms, as well as straight-through processing of collateral with full integration with treasury functions. By implementing the RealTime Clearing solution, the metals community now benefits from EMIR-compliant risk management, where stress-testing and back-testing results can be calculated ad hoc at any time of day, and end-to-end treasury management capabilities provide a true real-time view of the aggregated cash situation.
Cinnober has supplied key functionality for a number of systems used by the London Metal Exchange for over a decade, including the core electronic trading platform LMEselect. In 2012, after an in-depth procurement process, LME appointed Cinnober as its technology partner for its new clearinghouse.