London Metal Exchange | Glossary | Derivatives Compass

The London Metal Exchange (LME) is a UK exchange that trades futures on industrial metals such as nickel. LME Clear, a clearing house in the same corporate group, takes on every trade concluded on the LME.

The LME is a recognised investment exchange under the UK Financial Services and Markets Act 2000, and only its members can trade directly. Clients that are not members trade through a member. The LME's trading rules provide that, when prices move sharply over a short period, the LME may temporarily halt trading or cancel agreed trades.

The LME and LME Clear are separate legal entities. The LME decides on suspending trading and canceling trades, and LME Clear decides on margin calls.

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