LME Clear launches triparty collateral service with Euroclear
16 October 2025 UK

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 €41 trillion in assets under custody.
While previously, members were required to transfer individual securities directly into LME Clear’s 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’s 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: “We are keen to support our members who face the challenge of making the most efficient use of their resources.
“Introducing 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.â€
Sara Cescutti, chief commercial officer, EMEA, at Euroclear, adds: “Euroclear has a strong history of delivering collateral management solutions across the globe.
“This 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 – ultimately contributing to greater market efficiency.â€
The service will be provided by Euroclear, which holds more than €41 trillion in assets under custody.
While previously, members were required to transfer individual securities directly into LME Clear’s 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’s 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: “We are keen to support our members who face the challenge of making the most efficient use of their resources.
“Introducing 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.â€
Sara Cescutti, chief commercial officer, EMEA, at Euroclear, adds: “Euroclear has a strong history of delivering collateral management solutions across the globe.
“This 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 – ultimately contributing to greater market efficiency.â€
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