LME Clear has signed up 20% of LME members to accept warrants as collateral
The London Metal Exchange’s
clearing house is expecting a new-year boost to its compression
service when it plans to sign up several members after a swathe
of technology partners upgrade their systems in the first
LME Clear’s compression
service, which launched on November 23 amid an LME-wide upgrade project which saw
new contracts added to the exchange and its first market maker
schemes go live, is partly a response to new capital
requirements on banks, Priyanka Malhotra, head of business
development and relationship management at LME Clear told
"By launching when we did we were able to
attract banks to the service in time for them to prepare their
leverage ratio requirements at the end of the year. I expect we
will see banks use compression services in surges, around their
leverage ratio reporting dates and when their portfolios
benefit from it," she said.
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