LME Clear confirms issue with clearing system
On the morning of 24 October 2023, LME Clear experienced an issue with its clearing system, LMEmercury, with certain trade details not being correctly processed.
LME Clear investigated and LMEmercury has now been fully restored. Throughout, LME trading and pricing systems were unaffected and operated as normal.
During the period that LMEmercury was unavailable, some trades from both LMEselect and the inter-office market were rejected by LMEmercury and remain in a “rejected” state in LMEsmart. Other trades were held in LMEsmart in a “sent to clearing” state. Trades held in a “sent to clearing” state have now been automatically processed in the normal manner.
Contracts Executed in the Ring or on LMEselect remain in full force and effect. A number of these trades were rejected by LMEmercury (“Unprocessed Contracts”). To ensure that trade details can be processed in LMEmercury and accurately reflected in Members’ Accounts, the details of the Unprocessed Contracts will need to be re-submitted by Members in LMEsmart.
Agreed Trades made in the inter-office market during the affected period, details of which were submitted to LMEsmart and then rejected by LMEmercury, have not been Executed. Accordingly, to facilitate the Execution of these trades (by way of the completion of the Pre-Execution Check and Acceptance Criteria Processes) the Agreed Trade details will need to be resubmitted in LMEsmart.
Where Members have already resubmitted such details to LMEsmart, Members do not need to take any further action.
Members will be provided with full details of the trades which were rejected by LMEmercury. The LME requires Members to: (i) re-book any affected LMEselect trades; and (ii) ensure that their Agreed Trades from the inter-office market are booked appropriately.