How LMX Supports Counterparty Certainty

Swap agreements rely on trust. LMX helps manage counterparty risk by sitting in the middle and working with trusted partners to protect both sides.

5 Apr 2025

How LMX Supports Counterparty Certainty

Price certainty is powerful, but only if the deal gets done.

In any swap agreement, there's a key question that always comes up:

“What happens if the other party doesn’t pay or perform?”

At LMX, we help make sure that never becomes your problem.

Our Role in Every Deal

LMX sits in the middle of each agreement, managing the swap contract, monitoring terms, and making sure both sides stick to the deal.

But we don’t do this alone.

We work with trusted financial partners, regulated institutions that act as our execution and clearing partners. They’ve handled commodity transactions like this across many sectors.

How We Manage Counterparty Risk

Before any agreement is finalised, our partners will:

  • Check the counterparties, just like a bank would when offering credit

  • Confirm identity, trading history, and credit standing

  • Request collateral, a small deposit to back the deal, based on risk

This process ensures both sides are serious, and protects everyone involved.

In some cases, you may even be able to use existing lines of credit or trade finance relationships to support participation.

What If Something Still Goes Wrong?

If one party can’t settle their side, our clearing partner steps in to make the payment, and manages the recovery behind the scenes.

You don’t need to chase.
You don’t need to worry.
You stay protected.

Why It Matters

Many companies in construction and heavy industry aren’t used to financial contracts, and trust is earned, not assumed.

Our job is to build that trust by managing the risk professionally, with the right people and protections in place.

It’s not just about the contract. It’s about confidence.

When You Trade Through LMX, You’re Not On Your Own

We don’t just hand you a tool.
We bring the process, the partners, and the peace of mind.

That’s how we make cement pricing smarter, and safer.