LME Clear launches triparty collateral service with Euroclear
16 October 2025 UK
Image: Ronnayut/stock.adobe.com
LME Clear has launched a new triparty member margin collateral service, designed to enhance operational efficiency and optimise collateral management for its clearing members.
The service will be provided by Euroclear, which holds more than 鈧�41 trillion in assets under custody.
While previously, members were required to transfer individual securities directly into LME Clear鈥檚 collateral account to meet margin requirements, under the new triparty arrangement, members will be able to hold securities with Euroclear and issue a single instruction for Euroclear to transfer multiple securities to LME Clear.
Euroclear will handle the administration and optimisation of securities on behalf of members, ensuring collateral is used efficiently while meeting LME Clear鈥檚 margin requirements.
According to the firm, the introduction of a triparty agent also allows members to hold a wider range of eligible assets than under the current bilateral process.
LME Clear suggests the new arrangement makes it easier to add new categories and issuers of securities as acceptable collateral, and as part of the launch, it now accepts eligible collateral from an additional nine issuers, and has expanded eligibility to include US and UK inflation-linked bonds when held by Euroclear as the triparty agent.
Barry Gethin, head of collateral and liquidity services at LME Clear, says: 鈥淲e are keen to support our members who face the challenge of making the most efficient use of their resources.
鈥淚ntroducing a triparty service will allow members to reduce their operational burden and make optimal choices about the securities they provide as collateral. In addition, it opens the door to members holding a wider range of securities as acceptable collateral.鈥�
Sara Cescutti, chief commercial officer, EMEA, at Euroclear, adds: 鈥淓uroclear has a strong history of delivering collateral management solutions across the globe.
鈥淭his new initiative highlights the vital role we play in supporting clients and other market infrastructures to optimise collateral allocation, minimise settlement fails, and reduce credit usage 鈥� ultimately contributing to greater market efficiency.鈥�
The service will be provided by Euroclear, which holds more than 鈧�41 trillion in assets under custody.
While previously, members were required to transfer individual securities directly into LME Clear鈥檚 collateral account to meet margin requirements, under the new triparty arrangement, members will be able to hold securities with Euroclear and issue a single instruction for Euroclear to transfer multiple securities to LME Clear.
Euroclear will handle the administration and optimisation of securities on behalf of members, ensuring collateral is used efficiently while meeting LME Clear鈥檚 margin requirements.
According to the firm, the introduction of a triparty agent also allows members to hold a wider range of eligible assets than under the current bilateral process.
LME Clear suggests the new arrangement makes it easier to add new categories and issuers of securities as acceptable collateral, and as part of the launch, it now accepts eligible collateral from an additional nine issuers, and has expanded eligibility to include US and UK inflation-linked bonds when held by Euroclear as the triparty agent.
Barry Gethin, head of collateral and liquidity services at LME Clear, says: 鈥淲e are keen to support our members who face the challenge of making the most efficient use of their resources.
鈥淚ntroducing a triparty service will allow members to reduce their operational burden and make optimal choices about the securities they provide as collateral. In addition, it opens the door to members holding a wider range of securities as acceptable collateral.鈥�
Sara Cescutti, chief commercial officer, EMEA, at Euroclear, adds: 鈥淓uroclear has a strong history of delivering collateral management solutions across the globe.
鈥淭his new initiative highlights the vital role we play in supporting clients and other market infrastructures to optimise collateral allocation, minimise settlement fails, and reduce credit usage 鈥� ultimately contributing to greater market efficiency.鈥�
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
