How it Works

Trade submission – intraday or through backloading

  • CDSClear sources new trades from major inter-dealer brokers and off-SEF execution platforms
  • Bilateral trades in DTCC can be backloaded through a weekly process (interdealer trades only) or a daily process
  • Effective reporting and way of monitoring : trade statuses fed back in real-time to the members through the LCH Clearlink API (real-time messaging) and reports
  • Cleared trades are registered in DTCC’s Trade Information Warehouse and reported to the CFTC via DTCC’s Global Trade Repository in the US. CDSClear reports its trade legs to the European regulators via UnaVista in Europe.
     

Compression – flexible and customizable

  • Service available for both house and client trades
  • Automatic compression can run either at trade account level or at a customizable desk-ID level, on a daily or weekly basis. In addition, specific set of trades can be compressed through an ad-hoc compression service


Client account structures – compliant with European and US legal frameworks

  • Individual Segregated Account (ISA), Net Omnibus Segregated Account (Net OSA) and Gross Omnibus Segregated Account (Gross OSA)
  • LSOC without excess (FCM model)
  • Account structures presentation


Collateral management – pre-funding model for a safer service

  • Wide set of eligible collateral – cash €, £, $ and bonds in full title transfer or pledge mode (please refer to the acceptable collateral page for more information)
  • Direct access to the ECB liquidity thanks to Target2
  • Margin calls in € via Target2 or alternatively in $ via Bank of New York Mellon
  • Intraday novation facilitated through collateral buffer mechanisms in place respectively for house and client trades


LCH Portal – a single access point for end-users

  • CDSClear applications are all accessible through the LCH Portal – common to SwapClear and ForexClear and other LCH businesses
  • Manage your risk exposure and collateral requirements : run margin simulations through the Portfolio Margin Calculator (PMC) and transfer collateral in & out via Collateral Management System (CMS)
  • Manage your trades and your capital efficiency : select and backload trades, configure compression settings, split trades
  • Download reports, either via the web interface or the SFTP solution


End of day price contribution – ensuring the price quality

  • Accurate prices gathered on a daily basis from Clearing Members with open positions
  • A price control process is applied to ensure provided prices are not off-market


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