The London Metal Exchange (LME) has launched LMEshield, a new electronic warehouse receipt system for the global commodities market. The first receipt was issued by Henry Bath & Son Ltd on behalf of BNP Paribas Arbitrage SNC.
LMEshield is a custody tool that issues and manages electronic receipts relating to commodities stored off-warrant in a range of global locations. At go-live, LMEshield is available in 19 jurisdictions, including countries new to the LME storage network such as India, South Africa and Chile.
“We recognise that there is a need for a reliable standard for warehousing worldwide,” says Matthew Chamberlain (pictured), Head of Business Development at the LME. “We are pleased to be able to extend the LME’s experience in secure warranting beyond the LME network to improve confidence in global warehousing, provide protection against fraud and expand the market for commodities financing.”
LMEshield has been developed in partnership with software provider Kynetix. Hosted on a cutting-edge new platform and featuring a highly efficient print-in-depository receipting model, it is based on the same robust operating principles as the LME’s existing warrant-transfer system, LMEsword, which monitors stocks related to deliveries made on the LME market. The new system is available to LME members and non-members alike.
The LME has ambitious plans to expand the LMEshield network, and further eligible jurisdictions and commodities will be added in due course.
