How it Works

Ltd SA

LCH Ltd

Clearing operates through the EquityClear Clearing Platform (ECP). Registration of matched transactions presented to LCH Ltd occurs intraday on a real time basis.
 
The EquityClear Clearing Platform is open for the registration of trades between 7.00 hrs and 17.15 hrs London time.
 
On receipt and confirmation of eligible transactions into the EquityClear Clearing Platform, trades are governed under the rules of the LCH Ltd Rulebook
 
Initial margin rate levels are reviewed periodically by LCH to reflect inherent market volatility. For Equities with adequate historic time series the most recent 252 closing prices are used to determine the price volatility. If there is insufficient price history then a flat rate is applied. These rates are usually aligned with the sector volatility and are updated on a quarterly basis.
 
Members of EquityClear are eligible to clear products subject to approval. More information on becoming a member can be found here.

All transactions that are submitted to LCH SA are registered on a real time basis in its Clearing System in the name of the clearing member. Upon registration novation occurs.
 
The Cash Clearing System is open for the registration of trades between 9:00am CET to 5:40 pm CET. On receipt and confirmation of eligible transactions into the Clearing system, trades are governed under the rules of the LCH SA rulebook.
 
For transactions registered in the Cash Clearing System margins are required to cover the liquidation risk, and the negotiation risk. The calculations are made using SPAN ®.
 
More information on Equiduct Service offer can be found here.
 
Members of LCH are eligible to clear products subject to approval. More information on becoming a member can be found here.

EquityClear®

LCH Ltd EquityClear® provides a clearing service for equity based trades and equity equivalents. Both order book and off order book trades are cleared.

EquityClear® offers cash equity clearing for the London Stock Exchange and SIX Swiss Exchange with settlement in Euroclear UK & Ireland, SIS, Euroclear Bank and DTCC.

EquityClear® clearing members benefit from counterparty risk management, settlement netting, straight through processing and counterparty anonymity. Customers enjoy reduced direct and indirect costs and risks associated with participating in cash equity markets.

The EquityClear® service is designed to continue to expand the service to new markets and CSDs and deepen the coverage through capturing the broadest possible spectrum of trades executed through an exchange.