How it Works
Clearing operates through ECS, a standalone browser-based system with connection via existing Member leased lines or through secure internet connection.
The front-end to ECS is called ClearWay. Here Members can confirm their trades before they flow into ECS. All transactions eligible for clearing are registered as Block Futures through Cleartrade Exchange or traded directly on the Exchange. These trades then flow through to ClearWay. ClearWay is open accepting trades between 07:00 hrs and 18:00 hrs London time. The system is open until 18:30 hrs for confirmation of trades by Clearing Members.
Following receipt and confirmation of eligible transactions into the ECS system, trades are governed under the rules of the LCH.Clearnet Rulebook.
Fertilizer contracts held by LCH.Clearnet are Block Futures and are subject to initial and variation margining.
Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility. Daily end of day prices are provided by Cleartrade Exchange and final cash settlement of the contracts is based on prices provided by the Fertilizer Index.
All existing LCH.Clearnet Clearing Members are eligible to clear Fertilizer products subject to approval.