LONDON, Sept 3 The new clearing house of the
London Metal Exchange will launch on Sept. 22 after it received
approval from U.K. and European regulators, the exchange said on
The LME, the world's oldest and largest market for industrial
metals such as copper and aluminium, decided to build its own
clearing house three years ago to increase income, boost
development of new products and improve risk monitoring.
The Bank of England has approved LME Clear's application as
a central counterparty under the European Markets Infrastructure
Regulation (EMIR), an LME statement said.
This followed a positive opinion by regulators and central
banks in France and Germany, it added.
"It's the last significant milestone on the path to our
launch," said LME Clear Chief Executive Trevor Spanner.
LME Clear will initially clear all trades on the LME and
those matched on the OTC matching service.
In June, Spanner told Reuters the clearing house was looking
into expanding types of allowed collateral to include warehouse
warrants as well as Chinese renminbi as an acceptable cash
The exchange is owned by Hong Kong Exchanges and Clearing
(Reporting by Eric Onstad; Editing by Michael Urquhart)