LME chief: bourse could revamp margining after nickel kerfuffle

Bourse could move to end permitted netting of IM and VM calls, says Chamberlain

London Metal Exchange (LME)
Photo: HM Treasury/Flickr

The London Metal Exchange (LME) may end its unusual policy of allowing clearing members to net initial and variation margin calls – a method aimed at reducing the funding burden of metals hedges on producers – as the bourse grapples with heavy criticism of its handling of extraordinary price moves in its nickel contracts in the wake of Russia’s war in Ukraine.

Clearing houses typically levy both daily initial margin – a set amount of a contract’s value paid in cash or non-cash alternatives to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here