LONDON May 3 The London Metal Exchange is
considering building its own clearing system to boost earnings,
it said on Tuesday, but European clearing house LCH.Clearnet
said it was still best placed to serve the market.
"The LME is giving serious consideration to the possibility
of building its own clearing house... we have reached the point
at which deeper examination of the issues requires some
discussion in the public arena," the LME said in a notice to
"We believe self-clearing would also be accretive to earnings
at the LME," it added.
Its 2009 financial statements, the latest available, show
the LME posted a profit of 13.56 million pounds ($21.8 million)
and revenue of 43.59 million pounds.
Last year, when metals prices rose strongly, 120.3 million
lots were traded on the LME at a total notional value of $11.6
trillion, up by around 60 percent from the year before.
European clearing house LCH.Clearnet said that it had a long
relationship with the LME, and also a long relationship with LME
market participants, for whom it remained the top choice for
"LCH.Clearnet has not received notice from the LME or indeed
any indication regarding the likely timeframe," it said in a
"Market participants tell us they are looking for proven,
efficient and consolidated clearing offerings. LCH.Clearnet is
best placed to continue to deliver this."
(Reporting by Melanie Burton; editing by Jason Neely)