LME Clear stretched by CCP stress tests

The clearing house for the London Metal Exchange (LME) would burn through all its prefunded default resources in a severe market crisis, a European Union-wide stress test of central counterparties shows.

Under a doomsday scenario set in March 2019 in which the CCP’s top two clearing members collapse, LME Clear would incur about €712 million ($808 million) of losses beyond the required initial margin of the defaulters, exceeding its €446 million of prefunded guaranty resources. The additional

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

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