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London Metal Exchange

Summary of membership requirements


Categories 1 - 4
Requirement

Signed application form properly completed

Most recent audited financial accounts

Details of company ownership, activities, corporate structure and business rationale for application
Application
Comfort letter required from parent undertaking that ownership unlikely to change in the near future (Categories 1, 2, 4)

Receipt of satisfactory letters of support from two nominated member sponsors (Category 3 only)

List of staff responsible for the LME and related business and reporting structure

Compliance with relevant sections of Part 2 of LME rulebook:

Capitalisation at or above the relevant prescribed level (Categories 1 - 4)

Eligibility Office in or proximate to the City of London (Category 1)

Active commercial interest in trading on the LME (Categories 2, 3, 4)

Suitable financial and business standing (Categories 1 - 4)

Minimum number of B shares required for relevant Category of membership:

Category 1 - 25,000 B shares

Category 2 - 25,000 B shares


Shares
Category 3 - 5,000 B shares

Category 4 - 2,500 B shares

Category 5 and 6 - No requirement to hold B shares

Systems in place for trade recording, position keeping (Categories 1 - 4) and position reporting (Categories 1, 2, 4)

Systems Categories 1, 2 & 3 - must have connectivity to LME Matching and Clearing System

Categories 1, 2, 3 - must have connectivity to SWORD

Staffing Category 1 - sufficient LME approved dealers and clerks to man LME floor at all times

Administration Category 1 - signed tenancy agreement

LCH membership approved or LCH confirmed applicant meets criteria (not applicable to Category 4)
Approvals
FSA authorised and no outstanding FSA issues (not applicable to Category 3)