Hogan Lovells Advises on Creation of LME Clear
08 September 2014
LONDON, 8 September 2014 - Hogan Lovells has advised the London Metal Exchange (LME) on the creation of a new EMIR compliant derivatives clearing house – LME Clear – which received authorisation from the Bank of England on Wednesday 3 September 2014.
LME is the world's premier metal derivatives trading venue, trading over 80% of the world's non-ferrous metal futures and options contracts. These contracts are currently cleared through LCH.Clearnet, which will be replaced by LME Clear when it launches on 22 September 2014.
The Hogan Lovells team advising LME was led by London financial institutions partners Rachel Kent and Michael Thomas, with senior associate Angela Greenough, banking partner Andrew Taylor, Business Restructuring and Insolvency partner Joe Bannister, and IP partner Mark Taylor; together with colleagues in the US, France, Germany and the Netherlands.
Commenting on the project, Rachel said:
"This has been a fantastic opportunity to work with LME and the new team at LME Clear. The original instruction in 2012 represented our first opportunity to work with the LME group and we feel that this has been a very successful relationship."
"The authorisation of LME Clear is a great achievement, marking the culmination of over two years of cross-practice teamwork. With only a handful of clearing houses based in the UK, the development of a new UK clearing house is a significant milestone. The recent introduction of the European Market Infrastructure Regulation means that LME Clear has been designed from the outset with those requirements in mind. This project demonstrates and builds on our regulatory and market infrastructure expertise."