How It Works

LCH.Clearnet Ltd

Clearing operates through the EquityClear Clearing Platform (ECP). Registration of matched transactions presented to LCH.Clearnet occurs intraday on a real time basis.

The EquityClear Clearing Platform is open for the registration of trades continuously during the trading day. Due to time differences between Asia and UK, it will be necessary for LCH to process trades for clearing and settlement purposes during the Asian day.

On receipt and confirmation of eligible transactions into the EquityClear Clearing Platform, trades are governed under the rules of the LCH.Clearnet Ltd rulebook.

Initial margin rate levels are reviewed periodically by LCH.Clearnet 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.