Fees

RepoClear LTD            RepoClear SA            €GCPlus

RepoClear Fees

Effective from 1st January 2017

A minimum monthly charge per clearing member* of €8,500 is applied across all LCH Ltd and LCH SA Group activity in Bonds and Repo clearing, where the total registration fees chargeable to a member as below, are less than this minimum amount.
*(RepoClear Clearing Member or Sponsored Member)

Registration fees:

Repo registration fee:

A processing fee of €2.85 for Euro denominated trades (£2.35 for Sterling denominated and $3.50 for Dollar denominated trades).

Plus

An ad valorem component of the repo tariff as follows:
The first 1-90 days @ 0.00375%
The next 91+ days @ 0.00250%

See calculation example below.

Cash bond trade registration fee rate:

0.750 per million nominal + Processing Fee of €1.25/£1.25/$1.25 (depending on nominal currency of trade)

Example of Fee Calculation

Based on a trade of €100 million for a one-year term. (360 days)

Example of Fee Calculation:                       

Based on a trade of €100m for a one-year term (360 days)                
 

90 days @ 0.00375% (90/360) x (100,000,000x0.0000375) €937.50
+    
270 days @ 0.00250% (270/360) x (100,000,000x0.0000250) =€1875
+    
€2.85 processing fee   =€2.85
     
Total registration fee of €2,815.35 at an effective rate of 0.00282%

Settlement Related Charges

Settlement Related Charges relate to the passing back of the external costs that LCH incurs on behalf of RepoClear members in managing their respective settlement activity. These costs are invoiced retrospectively, on a monthly basis, based on activity.

Specific Collateral


Belgian securities:
DvP settlement €7.75 per net DvP settlement
Cash only settlement €7.75 per movement
FOP settlement €7.75 per settlement
Failed settlement €20 per intended settlement
UK Gilts:
DvP settlement £2.75 per net DvP settlement
Cash only settlement £2.75 per movement
FOP settlement £2.75 per settlement
Failed settlement £3.75 per intended settlement
All other securities
DvP settlement €2.00 per DvP settlement
Cash only settlement €2.00 per movement
FOP settlement €2.00 per settlement
Failed settlement  €20.00 per intended settlement

General Collateral

Term £GC
Opening instruction (TDO) £5.90 per TDO instruction
Ongoing settlement £5.90 per business day per settlement position
Closing instruction (TDR) £2 per TDR instruction
Cash only settlement £0.80 per cash instruction
Failed settlement £3.75 per intended instruction
Amendment (TDA) £1 per instruction

RepoClear Default Fund Remuneration

Member interest accrued on the RepoClear Default Fund: EONIA minus twenty basis points (in respect of EURO Contributions) and SONIA minus ten basis points (in respect of GBP Contributions).

Repo Dealer Codes (“RD Codes”)

With effect 1st January 2017, a charge of €2,500 per additional RD Code per month will be applied.

Sponsored Clearing Fees

Sponsored Members are subject to the same fees and settlement charges as outlined above for RepoClear Clearing Members. Fees are charged at the Sponsored Member mnemonic level. Agent Members will be charged a monthly Agent Fee of €5,000, starting January 2018. (No Agent Fees will apply in 2017).

Minimum Activity Charge (MAC)

For RepoClear Clearing Members joining after the 15th of each month, there will be no MAC applied to the first month of activity. 
For Sponsored Members, there will be no MAC applied to the first month of activity.
 

RepoClear SA Clearing Services Fees

Effective from 18th September 2017

For further information on fees, please send your request to Billing_Services@lch.com

The rates indicated below are expressed in euro and are subject to VAT at the applicable rate.

I. Clearing fees

The clearing fees as described in this section are common at Group level.

A. Minimum Activity Charge (MAC)

A single Minimum Activity Charge will apply to all clearing members registered in LCH SA and/or LCH Ltd accounts for RepoClear operations.

Calculated on a monthly basis, the MAC is the minimum monthly amount to be paid by each clearing member. This MAC is a common one for LCH SA and LCH Ltd; members registering operations on both "segments" will be charged the MAC amount once only.

                For all debts SA and Ltd                    
Group level MAC amount – monthly payable €8,500.00


The MAC is only levied if the total amount of clearing fees (see below) is lower than the amount of the MAC. In that case, the member is charged with the difference between these two amounts as follows:

If  ∑ fees m < MACm ⇒ charge of [ (MACm) - ∑ fees m ]

 Where:    ∑ feesm: represents the total clearing fees levied on buy/sell and repo transactions, on both LCH SA and LCH Ltd, in the course of the month ‘m'.
MACm: represents the Minimum Activity Charge for the same month.


LCH SA invoices the MAC in the course of the month following that for which it is due.

For General Clearing Members, LCH SA invoices the MAC for their transactions or their group ones if necessary and per trading member cleared (for example : a general clearing member is required to pay each month a minimum of € 8,500 per number of trading member cleared).

For RepoClear Clearing Members joining after the 15th of each month, there will be no MAC applied to the first month of activity.

      B. Clearing fees

LCH SA charges a fee for each transaction cleared. The clearing fees are invoiced on a monthly basis.

  • Buy/Sell Transactions

The cash clearing fee is composed of two distinct elements:

  • A fixed processing fee of €1.25 per cash trade
  • Plus an ad valorem registration fee (applied to the nominal of the cash trade) of €0.75 per million nominal is charged.

These clearing fees are calculated as soon as the transaction is registered.

  • Repo transactions

The Repo clearing fee is composed of two distinct elements:

  • A fixed processing fee of €2.85 per repo trade
  • Plus an ad-valorem component (applied to the nominal value of the repo) based on the term of the trade, calculated incrementally against a tiered annualised rate:
    • The first 1-90 days: 0.00375%
    • The next 91+ days: 0.00250%

Clearing fees for repo transactions are calculated on the basis of duration i.e.: the number of calendar days between the commencement date and the termination date of the repo (excluding the commencement date), with an annual basis of 360 days. They are charged after the termination date falls due.

II. Clearing services

Recovery of settlement related costs

LCH SA re-charges members with settlement related costs as follows:

French debt:

  • €1.65 per settled instruction in Target2 Securities

Italian debt:

  • €2.63 per settled instruction in Target2 Securities

German debt:

  • €1.45 per settled instruction in Target2 Securities

Spanish debt:

  • €1.45 per settled instruction in Target2 Securities

III. IDB services

A fixed fee of € 0.15 per million nominal is charged to the IDB for each transaction received which the IDB is counterparty to. These IDB fees are calculated as soon as the transactions are received.

IV. RepoClear SA Web Service: WebOTC

Please refer to the Technical fee grid for the access cards fees.

Click here to view this information as a pdf.
 

€GCPlus Clearing Services Fees

Effective from 1st January 2017

For further information on fees, please send your request to Billing_Services@lch.com

The rates indicated below are expressed in euro and are subject to VAT at the applicable rate.

I. Clearing fees

A. Minimum Activity Charge (MAC)

A single Minimum Activity Charge will apply to all clearing members registered in LCH SA and/or LCH Ltd accounts for RepoClear operations.

Calculated on a monthly basis, the MAC is the minimum monthly amount to be paid by each clearing member. This MAC is a common one for LCH SA and LCH Ltd; members registering operations on both "segments" will be charged the MAC amount once only.

 

     For all debts SA and Ltd    

Group level MAC amount – monthly payable

€ 8,500.00


The MAC is only levied if the total amount of clearing fees (see below) is lower than the amount of the MAC. In that case, the member is charged with the difference between these two amounts as follows:

If ∑ feesm < MACm => charge of [ (MACm) - ∑ feesm ]

 Where:    ∑ feesm: represents the total clearing fees levied on buy/sell and repo transactions, on both LCH SA and LCH Ltd, in the course of the month ‘m'.
MACm: represents the Minimum Activity Charge for the same month.


LCH SA invoices the MAC in the course of the month following that for which it is due.

For General Clearing Members, LCH SA invoices the MAC for their transactions or their group ones if necessary and per trading member cleared (for example : a general clearing member is required to pay each month a minimum of € 8,500 per number of trading member cleared).

For RepoClear Clearing Members joining after the 15th of each month, there will be no MAC applied to the first month of activity.

B. Clearing fees

LCH SA charges a fee for each transaction cleared. The clearing fees are invoiced on a monthly basis.

  • Repo transactions

The Repo clearing fee is composed of two distinct elements:

  • A fixed processing fee of €2.85 per repo trade
  • Plus an ad-valorem component (applied to the nominal value of the repo) based on the term of the trade, calculated incrementally against a tiered annualised rate:
    • The first 1-90 days: 0.00375%
    • The next 91+ days: 0.00250%

Clearing fees for repo transactions are calculated on the basis of duration i.e.: the number of calendar days between the commencement date and the termination date of the repo (excluding the commencement date), with an annual basis of 360 days. They are charged after the termination date falls due.

II. Clearing services

Recharge of triparty and collateral management costs  

LCH SA re-charges clearing members with Euroclear France and Euroclear Bank triparty and collateral management costs. These costs are made up:
  • Monthly operating costs of LCH SA accounts. These costs are spread between all clearing members 
  • Triparty Collateral management fees of LCH SA collateral giver accounts. They are recharged to collateral givers pro rata their average monthly outstanding on the service
  • Collateral management fees of LCH SA collateral taker accounts. They are recharged to collateral takers pro rata their average monthly outstanding on the service.
Calculated on a monthly basis, the triparty and collateral management costs are charged on the 10th open business day of the following month (example: the October charges are passed on the 10th open business day of November).

III. €GCPlus Web Service: Web EGCP

Please refer to the Technical fee grid for the access cards fees.

Click here to view this information as a pdf.