LME has published a notice of a settlement between General Clearing Member, Sigma Broking Limited and LME Clear Limited of certain alleged breaches of the LME Clear Rules and Procedures which includes a financial penalty of £70,000.
LME Clear has conducted an investigation into certain alleged breaches of LME Clear Rules 3.2.1, 3.2.2 and 8.2.4 and Membership Procedure Part B 3.1A (i) and (k) by Sigma during the period 21 February 2022 to 31 October 2022 (the “Relevant Period”).
Following the Investigation, LME Clear considers that, during the Relevant Period Sigma’s systems, procedures and controls for margin calls which were in place during the Relevant Period were inadequate, primarily due to an absence of appropriate written policies and procedures and training.
Sigma’s procedures for the lodging of Collateral were inadequately brief and failed to provide sufficient detail regarding the process and the roles…
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