LCH.Clearnet Account Structures under EMIR

The way in which CCPs manage members' and clients' assets is one of the most significant areas of change required by regulators. In Europe, EMIR has been designed to reduce counterparty risk and increase transparency within the markets.

LCH.Clearnet Ltd and SA offers members a choice of Individually Segregated and Omnibus Segregated accounts.

Click here to find out more about the choice of accounts that LCH.Clearnet  offers (Last updated January 2014).

Please select the approriate LCH.Clearnet Legal Entity

LTD SA

For the purposes of all Security Deeds and Deeds of Release, Reassignment and Termination entered into by LCH.Clearnet Limited in preparation for LCH.Clearnet Limited's authorisation under EMIR (all such deeds, the ‘Deeds'), the Authorisation Date (as defined in the Deeds) will be 12 June 2014, such date being the ‘New Authorisation Date' for the purposes of the Deeds. This notification constitutes a notification for the purposes of (a) clause 7 of each Deed of Release, Reassignment and Termination that relates to a Tripartite Deed of Assignment, (b) clause 9 of each Deed of Release, Reassignment and Termination that relates to a Security Trustee Deed of Assignment, and (c) clause 9 of each Security Deed.

Click here for a copy of the Security Deed

Annual Account Fees

An annual fee is charged for the account types described below:

1.    For all Services except SwapClear & ForexClear
 

  ISA OSA Net  OSA Gross
Business

Fee

Fee Fee
Denominated in £
EnClear £3,000 £1,000 £3,000
Equities £3,000 £1,000 N/A
Derivatives £3,000 £1,000 £3,000
FEX*  £3,000 £1,000 £3,000
Listed Rates** £3,000 £1,000 £3,000
RepoClear £3,000 £1,000 N/A
LSE Derivative Markets £3,000 £1,000 £3,000

*FEX service not yet live

** For Listed Rates packages only: the first OSA account is charged at £0, subsequent OSA arrangements will be charged at £1,000 per OSA Net or £3,000 per Gross OSA per year.

‘OSA’ means Omnibus Segregated Account.

‘ISA’ means Individual Segregated Account.


2.    SwapClear & ForexClear Account Prices

SwapClear and ForexClear charge a semi-annual account fee for the 6 month periods beginning 1 January and 1 July. The fee is calculated based on the number of live accounts^ of the relevant type on the SwapClear or  ForexClear service on the last day of the previous period i.e. 31st December and 30th June.

Note: ForexClear account structure fees under EMIR are waived until December 31, 2016.

a.    ISA / OSA Net Account Charges

  6 Month Billing Charge   Comparison Annual Cost
Number of Accounts Per account Capped cost
per package
  Per account Capped cost
per package
1 - 50 €1,750 €50,000   €3,500 €100,000

51 - 100

€1,000 €60,000   €2,000 €120,000
101 - 200 €600 €75,000   €1,200 €150,000
200+ €375 -   €750 -

Fees will be charged at the lower of the number of accounts multiplied by the banded annual cost per account or the capped cost per package.

Package discounts apply to each underlying Client^^ (not Clearing Member) considering all accounts opened by the relevant Clearing Client, across all Clearing Members. Once the client account cost is calculated, it will be billed to the client’s respective clearing member/s. Clearing Members are responsible for pricing arrangements between themselves and their clients.

b.    OSA Gross Account Charges

The first OSA Gross is charged at €0/€0, subsequent OSA Gross arrangements will be charged at €1,750 for each 6 month period (Comparison annual cost €3,500).
 

Legal Implications

It is important  that clearing members familiarise themselves with the legal implications associated with these ISA and OSA accounts.  LCH.Clearnet Ltd has produced disclosure for the purposes of Article 39(7) of EMIR,  and Regulation 34(2)(a)  of the FSMA 2000 (Recognition Requirements, etc) Regulations 2001 which can be accessed by clicking on the links below.

Legal Implications - Account Arrangements (Article 39.7 disclosure)

Legal Implications - Account Arrangements (Article 39.7 disclosure  - FCM business)

These disclosure statements include links to jurisdictional legal opinions which orm part of such disclosure.  These legal opinions are also available within the jurisdictional legal opinions heading above and contain details of the main legal implications of the respective levels of segregation offered including information on the insolvency law applicable in the relevant jurisdictions (including, but not limited to, information on how the default rules interact with applicable local insolvency laws).

Click here to view LCH.Clearnet Ltd's EMIR compliant Rulebook

Terms and conditions

LCH.Clearnet charges its Clearing Members; Clearing Members make their own pricing arrangements with end Clearing Clients

The Fees do not apply to Clearing Member Proprietary accounts

The Fees are non-refundable once paid, no refunds for partial years

No discounts for multiple accounts except where specified explicitly for SwapClear and ForexClear fee plans.

The same Fee model applies to Indirect Clearing Accounts

On the creation of a new account, the account fee becomes immediately payable, and then annually on the anniversary of the creation date thereafter, except for SwapClear and ForexClear Accounts where fees are payable on a semi-annual basis.

Defined terms used herein and not defined herein have the meaning assigned in the Clearing House’s Rulebook.

For SwapClear and ForexClear packages specifically

^ ‘Live account/s’ is defined as any account that has been on-boarded and could accept transactions for clearing on the calculation date.

^^ ‘Underlying Client’ refers either to each individual Clearing Client entity or, where relevant, a representative or agent that introduces a number of individual Clearing Client(s) to clearing and includes all accounts and activity across all Clearing Members of the Clearing Client or representative.

Jurisdictional Risk Disclosure

The following risk disclosure notice must be provided by all clearing members that clear for clients through the SwapClear, ForexClear or EnClear (Freight Division) services to clients that are incorporated in Singapore or operate through a Singaporean branch.

Singapore Clearing Client Disclosure

Rates Service Default Management Disclosure

The following disclosure notice must be provided by all clearing members to each clearing client, and all clearing members must provide confirmation to the Clearing House that it has discharged this obligation with respect to each of its clearing clients.

Rates Service Default Management Disclosure

FCM Rates Service Default Management Disclosure

 

Annual Account Fees

A yearly fee is charged for each ISA or OSA account as indicated in the table below.

  ISA OSA Net  OSA Gross
Business Fee Fee Fee
CDSClear* €0* €0* €0*
Derivatives €3,500 €1,200 €3,500
Equities €3,500 €1,200 €3,500
Fixed Income €3,500 €1,200 N/A
€GC Plus €3,500 €1,200 N/A

*CDSClear account structure fees will be waived until 31st December 2017 after which they will revert to the LCH.Clearnet SA standard level.

 

Legal implications

It is important  that clearing members familiarise themselves with the legal implications associated with these ISA and OSA accounts.

Legal implications - Account Structures

Click here to see the current Cash and Derivatives markets and Fixed Income products Rulebook.

Click here to see the current CDS Clearing Rule Book.

Terms and conditions

This fee model becomes effective from the date LCH.Clearnet is authorised under EMIR

On the creation of a new account, the Fee becomes immediately payable, and annually on the anniversary of the creation date thereafter

For existing Client accounts, the fee applies upon LCH.Clearnet being authorised under EMIR and annually on the anniversary thereafter

The Fees do not apply to House accounts

The Fees are non-refundable once paid, no refunds for partial years
No discounts for multiple accounts

No adjustments for multiple collateral accounts

The same Fee model applies to Indirect Clearing Accounts

Jurisdictional Legal Opinions

Information will be published as it becomes available.

SA

Australia 
Belgium 
Denmark 
Finland
France
Germany
Italy 
Luxembourg
Netherlands
Portugal 
Spain
Sweden
Switzerland 
United Kingdom

Jurisdictional Legal Opinions

Ltd

Australia
Austria
Belgium
Canada (Ontario)
Canada (Quebec)
Denmark
England I
England II
Finland
France
Germany
Hong Kong
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Poland
Portugal
Scotland
Spain
Sweden
Switzerland
USA
USA - FCM

SA
The following legal opinions are available on request

Belgium 
Denmark 
Finland
France
Germany
Italy 
Luxembourg
Netherlands
Portugal 
Spain
Sweden
Switzerland 
United Kingdom