Contracts for Difference

LCH Limited is the leading European equity central counterparty, providing its members the ability to clear Centrally Cleared Contract for Differences (ccCFDs).  LCH is the first European clearing provider to offer clearing services for CFDs and the first clearer globally to offer clearing for combined CFD equity trades, where the cash equity orders can directly trade against ccCFDs.

The service is line with the European Commissions' aim to increase the proportion of cleared OTC contracts, and still enables investors to access the best market price for a trade while benefiting from all the advantages that central clearing offers. This includes reduced counterparty risk, margin offsets and collateral efficiencies. Members also benefit from major cost and process efficiencies and give-up functionality.