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Citi, BofA and JP Morgan to provide financial infrastructure for LME Clear

The London Metal Exchange (LME) has chosen Citi, Bank of America Merrill Lynch and JP Morgan to offer financial infrastructure to its self-clearing platform, LME Clear.

Citi will assist in the LME Clear secure payment system as well as cater concentration bank services, processing receipts from members’ settlement banks, under the terms of the agreement.

Apart from this, Citi will also provide custodian services for the holding of fixed income collateral from members.

In order to secure investments with global counterparties in compliance with the new European Market Infrastructures Regulation (EMIR) requirements, Bank of America Merrill Lynch will provide treasury execution services for LME Clear.

The metal exchange said that JP Morgan will serve as LME Clear’s gold custodian, as well as supervise member gold submitted as collateral to offset positions in the platform.

Development of LME Clear is currently under progress and is expected to go live in 2014.

Executing more than 80% of global non-ferrous business, the London Metal Exchange is the global hub for industrial metals trading and price-risk management.