In the mid 1990s it was decided that given the way and speed with which financial markets in general were developing and changing, combined with the trend of market supervisors to require more vigorous audit trails and reconciliations, the London bullion market would look at developing the electronic matching system for over-the-counter (OTC) settlements.

Initial exploratory work in this connection was undertaken by the London Bullion Market Association (LBMA) Physical Committee, which comprised the clearing members. However, it was subsequently decided that the most effective way of carrying the electronic matching system project forward would be for the clearing members to form a separate company specifically for the purpose of developing and administering such a system. As a result LPMCL was formed in April, 2001.

The LPMCL began to clear platinum and palladium on a loco London basis with effect from September 1, 2009, and since then any transaction maturing on or after September 1, 2009 dealt on a loco London basis clears through the four members of LPMCL.

LPMCL is a company limited by shares and its Equity and User Members comprise those bullion clearers that successfully apply for membership.