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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2639
 Service Circular No:LME No 420
Date:16 June 2010
To:All LME Clearing Members

Synapse Implementation for LME

Dear Member 

This document provides important information to members in preparation for the Synapse implementation for LME on Monday 12 July 2010.

Please note: The planned go-live date of 12 July 2010, is subject to a contingency of two weeks until Monday 26 July 2010. Should this contingency be invoked we will of course inform members in due course.

Parallel Run

We have been successfully carrying out a parallel run on Synapse to test the robustness and reliability of the new service. Synapse is now operating alongside the existing LME Matching System (MCS) during a changeover phase which will last for the next four weeks until we go live.  Over the last two weekends, changes were made to MCS and Synapse and we began simultaneously operating the two systems last week. The weekend activities to start the parallel running period included a full migration of static data and positions from MCS

The two systems have continued to run smoothly since, with all positions, and other calculated data fully reconciled. The Synapse intra-day and end of day processing has also been running successfully during parallel run.

Synapse is now being supported as a live production service by IT Production Support with the normal incident management process being followed.

This week we will begin connecting members to the Synapse production system allowing members to set up the necessary users for go live, reconcile data between the two systems, continue to test the data through their own systems and to fully prepare for go live in July.

Member Parallel Run Activities

Members should test their connectivity to the Synapse system production version starting this week. This needs to be completed by Friday 25 June 2010.

From the 21 June 2010 Members will be able to access all components of Synapse service. We require members to have logged on to all Synapse production components by 2 July 2010 including the GUI, XI+ (using PC Bridge where applicable) and Member Reporting.

We will require members to certify their readiness and confirm the accuracy of the open positions over the next few weeks.

Please Note:- During the parallel run period members will not be required to interact with Synapse for any business activities, i.e. option exercise, as LCH.Clearnet will operate this process replicating member actions on production MCS.

Member activities:-

Set-up and test connectivity to all applications that make up Synapse service for the LME, including:-

• Synapse GUI application
• External Interface Plus (XI+) 5.08.05
• Member Reporting (Memberlive)
• Request and test Individual User set-up requirements for the Synapse GUI

Connectivity, for Synapse GUI and XI+ please refer to documentation available on the Member Secure Area of the LCH.Clearnet Website and as provided in communications to members during the recent testing phase.

PC Bridge V5.0-2. The final production version of PC Bridge will be available for download this week from the Member Secure Area of the LCH.Clearnet website. Users should install and test this version ahead of the go-live weekend.

Please Note: Members should continue to use current production version of PC Bridge V4.4-0 that interfaces to MCS until cutover to live Synapse on 12 July 2010.

For Member Reporting (Memberlive) this is an existing live environment and all LME Members should now have established a connection to this environment for Banking reports.

User Account Set Up

Members should complete the attached “Synapse User Account Request Form” for each individual user and return to the address below by Friday 18 June 2010.

Scanned copies can be emailed to: 

[email protected] 

However please ensure that originals are also sent to the address below:

Business Continuity & Security
LCH.Clearnet Ltd
Aldgate House
33 Aldgate High Street
London EC3N 1EA

Member Readiness Self-Certification Process

All Members have been participating in a number of test phases culminating in the Formal Member Test phase currently underway. At the end of the Formal Member Test phase Members will be required to certify that they have completed all required testing and have taken all the necessary steps to prepare their systems and operations for go-live of Synapse.

Members must review, and validate any changes to their systems and procedures for Synapse go-live during testing and parallel run phases. All information relating to Synapse testing documentation is available on the LCH.Clearnet secure website:

Self Certification Form

We require members to complete and return the attached ‘Member Readiness Self-Certification’ form duly authorised by a senior officer, no later than 2 July 2010 to:

[email protected]

Or post to:-

Att: Member Technical Implementation
Commercial Services
LCH.Clearnet Ltd
Aldgate House
33 Aldgate High Street
London EC3N 1EA

Options Strike Price Creation

Currently MCS has over 100,000 option strike prices for which closing prices are calculated each day but only have open positions equating to around 14,000 strike prices.

With the introduction of Synapse there will be a data cleansing process to reduce the number of strike prices to match the number of strike prices with open positions.

We recognize that members may have open positions for a greater number of strike prices than LCH.Clearnet and will therefore provide the members with the opportunity to create additional strike prices before go-live.

We will advise you of the process and the opportunity of members to test this under separate cover

Implementation Phase

The final phase before the go-live of the Synapse service will include establishing connectivity to Synapse and LMEsmart 1.7.6, reconcile positions between MCS and Synapse in parallel run and have tested cutover plans to Members’ downstream systems.

We will also require members to formally sign off their implementation activities during the go-live weekend. We will provide a more detailed plan separately.

Next Steps

The following is a summary of the activities and dates from and by when we would expect members to undertake with LME and LCH.Clearnet in preparation for the go-live weekend.

Date FromDate ByActivity
14 June25 JuneConnectivity test to Synapse production service
18 JuneReturn completed 'Synapse User Account Request Form'
21 June2 JulyConnect to Synapse GUI, XI+ (using PC Bridge if applicable) and Member Reporting
21 June25 JuneReturn completed ‘Member Readiness Self-Certification Form’
1 July7 JulySend in file with Option Strike Prices you want us to create in Synapse
8 July10 JulyReconcile positions between MCS and Synapse
10 JulyProvide weekend implementation go-live sign-off

If you have any questions with regards to the above, please contact one of the following and we will have someone respond to you as soon as possible:

Martin West[email protected]+(44) 207 426 7089
Gary Lyons[email protected]+(44) 207 426 7122
David Farrar[email protected]  +(44) 207 426 7582

Yours sincerely,


David Farrar
Director, Head of Commodities and Metals