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. All transactions eligible for clearing are blocked in through  Cleartrade Exchange, and then flow into ClearWay  ClearWay is open for the registration of 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.

Iron Ore 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 settlement of the Iron Ore contract is based on prices provided by The Steel Index.

All existing LCH.Clearnet Clearing Members are eligible to clear  Iron Ore products subject to approval. More information on becoming a member can be found here.