hg0088皇冠to welcomeCollateral acceptable to cover margin liabilities must be highly liquid with low credit and market risk. Collateral will be tiered based upon credit and liquidity standards and the tiering applied will form part of haircut and limit calculations. Non-Cash collateral will be subject to minimum credit standards based upon internal framework and ongoing review.
hg0088皇冠to welcomeCollateral will be regularly assessed in terms of market depth and ability to liquidate within holding period in stressed market conditions. Acceptable collateral must be able to be reliably valued on a daily and intra-day basis with sufficient market data to enable the robust management of market risk. Collateral must be denominated in a currency in which LME Clear contracts or which any FX exposure can be risk managed. Acceptable collateral is subject to a robust and transparent limit, haircut and valuation structure and liquidity based limits related to lodgement and withdrawal.
hg0088皇冠to welcomeAcceptable collateral for Default Fund purposes is USD Cash.
hg0088皇冠to welcomeAcceptable collateral for margin cover purposes is as follows:
Allocated gold bullion
Warrants are only acceptable on a metal for metal basis – i.e. Aluminium warrants will be acceptable as collateral to cover Aluminium positions only etc.
hg0088皇冠to welcomeLME Clear publish detailed information about the collateral limit structure employed. This information is available to Member firms who can access the information.
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