As Europe gears up to meet derivatives regulation mandated under European Market Infrastructure Regulation (EMIR), LME Clear, the future clearing arm of the London Metal Exchange (LME), is connecting its new trade reporting service for derivatives, LMEwire, to The Depository Trust & Clearing Corporation’s (DTCC) Global Trade Repository (GTR)
Starting February 12, 2014, the EMIR deadline to begin reporting European derivatives trades across all asset classes, LMEwire will help members and their clients comply seamlessly with the new rules. LME Clear will be able to transpose and transport all relevant exchange-traded data from the LME’s matching system, LMEsmart, directly to DTCC’s trade repository, eliminating the need for members to process the data themselves. LME members will also be able to file over-the-counter (OTC) transaction data using LMEwire.
“We are delighted to be working with LME Clear to offer an efficient and reliable EMIR reporting solution for LME’s clients,” said Sandy Broderick, CEO, DTCC Deriv/SERV. “This strategic partnership reflects our commitment to providing an open and flexible reporting model and user choice. With LMEwire, members will benefit from a timely and holistic view of their derivatives transactions, while at the same time helping ensure that their reporting obligations are being met.”
The London Metal Exchange, a member of HKEx Group, is the world centre for industrial metals trading. More than 80% of global non-ferrous metals business is conducted on its three trading platforms: LMEselect (electronic), the Ring (open outcry) and the 24-hour telephone market. The world’s metal community uses the LME to trade futures, options and LMEswaps to hedge against adverse price movements – prices which are discovered on LME markets and used as the global benchmark.
LME Clear, launching on September 22, 2014, has been designed and built in consultation with LME members, especially for users of the LME. LME Clear will be EMIR compliant, according to LME.
DTCC operates multi-asset class derivatives trade repositories in major derivatives jurisdictions around the world. DTCC has been supporting regulatory reporting in the U.S. since October 2012, in Japan since April 2013, and in Australia and Singapore since October and November 2013, respectively. It will further support regulatory reporting in Hong Kong starting in December 2013 and in Europe beginning February 2014. The GTR was recently approved as a trade repository by the European Securities and Markets Authority.
“We look forward to collaborating with DTCC to bring TR services to our members and to develop further services as demand allows,” said Adrian Farnham, COO of LME Clear. “Members using LMEwire will benefit from the ability to direct relevant data straight to DTCC which saves them time and money and will be the most efficient way for them to meet their new regulatory obligations.”