Sept 28 (Reuters) - The clearing house of the London Metal Exchange (LME) on Thursday said it will cut the size of its minimum default fund.
LME Clear will lower the minimum level of the default fund to $1,011,932,043 from $1,030,778,739, effective from Oct. 2.
This the second time within 31-days that LME is cutting the size of minimum default fund.
In the event of a member default, LME Clear takes over the member's portfolio and sells it. Any losses are initially offset against margins paid by the defaulter, and then by LME Clear's default fund. (Reporting by Harshit Verma in Bengaluru)