New clearing system for metal exchange

The London Metal Exchange will introduce a new clearing system May 29.

Changes to the current form of trading will include the introduction of a single monthly prompt date for 12 months beyond the existing daily prompt dates for the first three months, traded option contracts in sterling and U.S. dollars for all six LME metals (Grade A only for copper and the 10,000-oz contract only for silver), and the introduction of a terminal network matching system for clearing inter- office trading.

The LME also has amended its rules to allow the election of representative subscribers of companies not incorporated in the United Kingdom. The amendment means, in effect, that non-ring membership is now available to overseas companies meeting the standard conditions of the LME and is part of the exchange.

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