The Collateral Management System

The Collateral Management System is LCH Ltds's on-line collateral management solution, which enables efficient management of your collateral.

Benefits include:

  • Enhanced transparency on the status of instructions
  • Reduced risk of errors/omissions
  • Increased efficiency
  • Better security and control
Ltd SA

LCH Ltd

The Collateral Management System enables Clearing members to:

  • Instruct movements of securities to/from the Clearing House or transfer securities between mnemonics and sub accounts
  • Instruct movements of cash to/from the Clearing House or transfer cash between mnemonics and sub accounts
  • Instruct and update triparty collateral transactions
  • View on-line security, cash and triparty balances and headroom
  • See on-line liabilities by account and market and collateral valuations for cash, securities and triparty
  •  Receive email notifications of instructions and instruction status updates
  • Export instruction and balance data to .csv files

CMS Messaging Service

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CMS Standard Messaging Service

The Standard Messaging Service provides Clearing Members with a message interface to instruct collateral movements with LCH and receive margin call notifications and statement reporting for cash and bilaterally delivered securities. The service is provided in addition to the on-line CMS User Interface and is available for all account types.

The following inbound and outbound message types in the SWIFT MX (ISO 20022) formats are supported (as shown in the graphic above):

  • Colr.003.001.03 Margin Call Request (outbound – from LCH)
  • Colr.007.001.03 Collateral Proposal (inbound – to LCH)
  • Colr.008.001.03 Collateral Proposal Response (outbound – from LCH)

In addition the following outbound message types in the SWIFT MT (ISO 15022) formats are also supported (as shown in the graphic above):

  • MT 535 Statement of Holdings reporting (outbound – from LCH)
  • MT 950 Statement Message (outbound – from LCH)

Information on how to implement the messaging is provided in the CMS Messaging Service & On-Boarding Guide with usage guidelines and sample messages published on MyStandards (https://www2.swift.com/mystandards/group/LCH).

CMS Custodial Seg Messaging Service

The CMS Custodial Seg Messaging Service provides SwapClear Clearing Members with a message interface to affirm/reject tri-party transaction adjustments proposed by a client with LCH and receive reporting on the tri-party transaction status and underlying security allocations. The service is provided in addition to the on-line CMS User Interface and is only available for the Custodial Seg account type.

The following inbound and outbound message types in the SWIFT MX (ISO 20022) formats are supported (as shown in the graphic above):

  • Colr.007.001.03 Collateral Proposal (outbound – from LCH) - Notification
  • Colr.008.001.03 Collateral Proposal Response (inbound – to LCH) – Affirmation
  • Colr.006.001.03 Collateral Management Cancellation (outbound – from LCH)

In addition the following outbound message types in the SWIFT MT (ISO 15022) formats are also supported (as shown in the graphic above):

  • MT 558 Triparty Collateral Status and Processing Advice (outbound – from LCH)
  • MT 569 Triparty Collateral and Exposure Statement (outbound – from LCH)

Information on how to implement the messaging is provided in the CMS Messaging Service & On-Boarding Guide with usage guidelines and sample messages published on MyStandards (https://www2.swift.com/mystandards/group/LCH).
 

CMS Third Party Messaging Service

The Third Party Messaging Service provides Clearing Members with the ability to configure clients, asset managers, collateral managers or other third parties with direct reporting of Clearing House margin call notifications and statement reporting for cash and bilaterally delivered securities in respect to individually segregated accounts (ISAs).

The following outbound message types in the SWIFT MX (ISO 20022) formats are supported (as shown in the graphic above):

  • Colr.003.001.03 Margin Call Request (outbound – from LCH)

In addition the following outbound message types in the SWIFT MT (ISO 15022) formats are also supported (as shown in the graphic above):

  • MT 535 Statement of Holdings reporting (outbound – from LCH)
  • MT 950 Statement Message (outbound – from LCH)

Information on how to implement the messaging is provided in the CMS Messaging Service & On-Boarding Guide with usage guidelines and sample messages published on MyStandards (https://www2.swift.com/mystandards/group/LCH).

LCH SA

The Collateral Management System (CMS) enables Clearing members to:

  • Instruct movements of securities to/from the Clearing House or transfer securities between markets and sub accounts,
  • Instruct movements of cash to/from the Clearing House,
  • View on-line security and cash balances,
  • See on-line collateral valuations for securities,
  • Receive email notifications of instructions and instruction status updates,
  • Export instruction and balance data to .csv files.

CMS Swift MX Messaging Service

The CMS SWIFT MX Messaging Service will be introduced for LCH SA in a later stage.

For further information please contact collateral.services@lch.com

In the event of an outage of the CMS, Clearing members will be notified via Bulletin of the switch to contingency arrangements. Clearing members should then to revert the forms for securities and cash collateral movement available at the following link.