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LME Clear Disclosure and transparency

Please find the attached document that covers LME Clear Disclosure in detail. The document covers

Types and treatment of account

Details the types of account which are made available by LME Clear and how they are operated.

Calculating and maintaining margin per account

The Margin Requirement for each Member will be the amount which LME Clear may determine and notify the Member from time to time. At present, a Member's Margin Requirement will be calculated, maintained and applied for each Account on a net basis.

Members' counter-party risk on LME Clear

To the extent a Member provides LME Clear with cash, whether as Collateral or Default Fund Contributions, general legal principles and the contractual arrangements provided by the Rules mean that ownership is transferred to LME Clear and in exchange the Member is owed a corresponding debt by LME Clear.

Default rule

LME Clear's procedures set out in Rule 10 and the Default Procedures constitute the default rules of LME Clear for the purposes of Part VII of the Companies Act 1989, the Recognition Regulations, the Settlement Finality Regulations and EMIR.

Portability - Transfer of client accounts from a defaulting member to another member

The Rules provide for the portability of Client Accounts upon the default of a Member, in accordance with LME Clear's obligations under EMIR Article 48(5) and (6).

Legal implications of applicable insolvency law

Keeping all the Accounts of one Member separate from those of other Members allows transactions between LME Clear and the Member, and the Collateral provided by the Member, to be dealt with separately from those of other Members should LME Clear or the Member enter into insolvency proceedings.

Clients' insolvency exposure to members and other clients

Members will be organised in a number of different jurisdictions and LME Clear cannot comment on how insolvency procedures in each Member's home jurisdiction or elsewhere will function.

Indirect clients

LME Clear will permit Members to establish Client Accounts in respect of Indirect Clients (that is, the Clients of the Member's own Clients). Each such Account will be a form of ISA that the Member maintains in respect of the single Client that has the relationship with the underlying Indirect Client(s)

LME Clear Transparency - EMIR Article 38(2)