LME could drop LCH.Clearnet for in-house clearing

From a press release issued by the LME...

The LME is giving serious consideration to the possibility of building its own clearing house. After several months of feasibility studies, we have reached the point at which deeper examination of the issues requires some discussion in the public arena, hence the decision to make this announcement.

The LME’s decision to examine self-clearing is driven by strategic considerations arising from the ability of an exchange to manage and develop its own clearing services in a world where the horizontal clearing model is being steadily eroded. In addition it should be noted that we believe self-clearing would also be accretive to earnings at the LME.

A period of engagement and consultation with shareholders, members and other stakeholders will now be necessary before a final decision can be taken. No deadline has been set for reaching a definitive decision.

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