November 1, 2018 / 12:43 PM / 10 months ago

REUTERS SUMMIT-LME says EU clearing house pledge gives time for regulator approval

LONDON, Nov 1 (Reuters) - The European Union’s move to allow EU firms temporary access to UK clearing house services in the event of a no-deal Brexit should give the London Metal Exchange time to get approval for its operations, LME Chief Executive Matt Chamberlain said.

The European Securities and Markets Authority (ESMA) said earlier this year the exchange may not be able to submit an application to become a recognised third country clearing house until after Brexit.

This would mean six members in European Economic Area (EEA) countries would not be able to access LME Clear.

Chamberlain said he was grateful for the Commission’s decision to take a practical approach to the situation.

“This temporary transition period just bridges us between being a EU clearing house and being able to get third country recognition,” Chamberlain told the Reuters Commodities Summit.

“Logically, the period would be long enough, but we need to see the detail,” he added.

He said however that until there was a legally binding document on the table, it was still important that the LME and its members had contingency plans. (Reporting by Pratima Desai and Veronica Brown; Editing by Kirsten Donovan)

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