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 either blocked in through Cleartrade Exchange by approved  Brokers or trade directly on Cleartrade, and subsequently 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.

Contracts held by LCH.Clearnet are Block Futures and  are subject to initial and variation margining. On expiry all net positions are cash settled. Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility. Final settlement is based on prices provided by The Steel All existing LCH.Clearnet Clearing Members are eligible to clear steel products subject to approval.