How it works

Trades are negotiated bilaterally in accordance with current market practices.

Where both parties agree to submit the trades for clearing, they each independently submit their trade half to LMEsmart for matching. Once matched, the trade is transmitted to LCH.Clearnet for clearing through Synapse.

Synapse calculates margin requirements on a daily basis and undertakes the netting and settlement of trades on maturity.

The net gold amount is settled by delivery of unallocated loco London gold through London Precious Metal Clearing Ltd members, in accordance with current market practice. The net currency value is settled through LCH.Clearnet’s Protected Payments System.

Trade flow