LME Clear to provide trade reporting service

Blog - 2013.11.21

LME Clear has now officially announced the selection of The Depository Trust & Clearing Corporation (DTCC), an approved trade repository, as its strategic partner for the new LME reporting service, LMEwire. The service, powered by LME Clear and delivered by Cinnober, will be available by 12 February 2014, the confirmed start date for the reporting obligation for all asset classes, as set out by the European Market Infrastructure Regulation (EMIR). 

LMEwire will enable members and their clients to efficiently comply with the new rules mandated by EMIR. LME Clear will be able to transpose and transport all relevant exchange-traded data from the LME’s matching system directly to DTCC’s trade repository, eliminating the need for members to process the data themselves. LME members will also be able to file over-the-counter (OTC) transaction data using LMEwire. 

“We look forward to collaborating with DTCC to bring TR services to our members and to develop further services as demand allows,” said Adrian Farnham, COO of LME Clear. 

“The major benefit for members using LMEwire is that we will direct the relevant data straight to DTCC. This will save members time and money and will be the most efficient way for them to meet their new regulatory obligations.” 

DTCC operates multi-asset class derivatives trade repositories in all the major derivatives jurisdictions around the world. DTCC has been supporting regulatory reporting in the US since October 2012, in Japan since April 2013, and in Australia and Singapore since October and November 2013 respectively. It will further support regulatory reporting in Hong Kong from December 2013, in addition to Europe from February 2014 where it was recently approved as a trade repository by the European Securities and Markets Authority. 

DTCC's trade repositories have significant experience in handling large transaction volumes across all asset derivatives classes in multiple jurisdictions. DTCC is already the repository of choice for the majority of derivatives dealers and end users alike. 

“We are delighted to be working with LME Clear to offer an efficient and reliable EMIR reporting solution for LME’s clients. This strategic partnership reflects our commitment to providing an open and flexible reporting model and user choice. With LMEwire, members will benefit from a timely and holistic view of their derivatives transactions, while at the same time helping ensure that their reporting obligations are being met,” said Sandy Broderick, CEO, DTCC Deriv/SERV, in an official press release earlier today. 

Last summer the LME appointed Cinnober as its technology partner for the new LME Clear clearing house. The delivery of LMEwire marks the seventh system Cinnober is providing to the LME within a decade, including its electronic trading platform LMEselect.

“We’re proud to be the LME Clear’s technology partner within one of the world’s most exciting and focused clearing projects,” comments Veronica Augustsson, CEO of Cinnober. “The development and introduction of LMEwire is a direct result of the target-oriented cooperative spirit in our joint project. I’m very pleased to see how yet another customer project is being constructed on Cinnober’s hallmarks: teamwork, trust and transparency.”

LMEwire documentation, including data specifications for the OTC aspect of the service will be available later this month and testing will take place in January.

Additional notes

  • LME Clear is the LME’s self-clearing platform, which is on schedule to launch on 22 September 2014.
  • A trade repository is a database for the collection of all exchange-traded and OTC trades data in Europe, mandated by EMIR. There will be trade repositories for all asset classes. 
  • The European Commission has confirmed that all exchange-traded and OTC transactions are required to be reported from 12 February 2014.

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