LME Clear confirms situation with clearing system

On the morning of 24 October 2023, LME Clear skilled a difficulty with its clearing system, LMEmercury, with sure commerce particulars not being appropriately processed.

LME Clear investigated and LMEmercury has now been absolutely restored. All through, LME buying and selling and pricing methods have been unaffected and operated as regular.

Throughout the interval that LMEmercury was unavailable, some trades from each LMEselect and the inter-office market have been rejected by LMEmercury and stay in a “rejected” state in LMEsmart. Different trades have been held in LMEsmart in a “despatched to clearing” state. Trades held in a “despatched to clearing” state have now been robotically processed within the regular method.

Contracts Executed within the Ring or on LMEselect stay in full pressure and impact. Quite a lot of these trades have been rejected by LMEmercury (“Unprocessed Contracts”). To make sure that commerce particulars might be processed in LMEmercury and precisely mirrored in Members’ Accounts, the small print of the Unprocessed Contracts will must be re-submitted by Members in LMEsmart.

Agreed Trades made within the inter-office market through the affected interval, particulars of which have been submitted to LMEsmart after which rejected by LMEmercury, haven’t been Executed. Accordingly, to facilitate the Execution of those trades (by the use of the completion of the Pre-Execution Examine and Acceptance Standards Processes) the Agreed Commerce particulars will must be resubmitted in LMEsmart.

The place Members have already resubmitted such particulars to LMEsmart, Members don’t must take any additional motion.

Members will likely be supplied with full particulars of the trades which have been rejected by LMEmercury. The LME requires Members to: (i) re-book any affected LMEselect trades; and (ii) be certain that their Agreed Trades from the inter-office market are booked appropriately.