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  • Melissa van der Merwe (Director)

LME Clearing House says Interest Growing to use Metal as Margin Collateral


​With central clearing of standardised OTC derivative contracts gaining traction under the EMIR and Dodd Frank regulations, market participants are becoming more focussed on diversifying the types of assets that they can post to the clearing house as collateral.

This Reuters article gives an interesting insight into how LME clearing house is permitting commodities to be posted as Initial Margin for commodities trades that are cleared. Ultimately, once all the margin rules are in place (variation margin and initial margin for uncleared OTC derivatives, as well as the margin requirements for cleared trades) collateral optimisation strategies, and diversifying the types of collateral that can be posted, will be of key importance.

Read the article here.

If you wish to find out more about the operational aspects of clearing, or the legal documentation required before clearing can begin, DeriviDoc has these upcoming courses available:

Central Clearing – The Operational and Legal Aspects

The next session is in Johannesburg on Thursday 06 July 2017 ... register now.

The Legal Documentation Required for Clearing

The next session is in Johannesburg on Friday 07 July 2017 ... register now.

#clearing #centralclearing #OTCderivatives #EMIR #DoddFrank #commodities #ISDA #derivatives #clearinghouse

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