PPS Concentration Activities

LTD


 

Protected Payment System and Concentration Process - Risks

Activity Timing (UK time) Risk
Overnight PPS calls sent By 08:00 Clearing member is liable for fulfilment of its obligation.
Overnight PPS calls confirmed by PPS Banks 09:00 Overnight PPS calls must be confirmed by 09:00 by PPS Banks. Until the PPS Bank has transferred funds to the Concentration Bank, the clearing member remains liable to fulfil its obligation if the PPS Bank defaults.
Auto-repay payment instructions released 09:15 Members that have requested auto-repay (where available) are automatically repaid any excess cash balances that remain on their account(s), PPS Pays may be funded partially or wholly by PPS calls and/or concentration of funds. Where PPS pays are funded by the concentration of funds, LCH Ltd's obligation to pay the transfer amount is extinguished once its concentration account is debited.
Clearing Member requests for withdrawal of funds 09:30 Cut-off for requesting return of excess cash balances for clearing members not on auto-repay.
Concentration Process 09:30 Funds are transferred to/from the PPS Banks. PPS Banks must transfer funds from LCH Ltd's account to the concentration bank within two hours following receipt of instruction.
Intra-day calls and Clearing Member pre-funding requests (UK PPS) 09:00 - 16:00 Intra-day calls must be confirmed within one hour following receipt of instruction by the PPS Bank.
Intraday calls and Clearing Member pre-funding requests (US PPS) 16:00 - 21:00 As above
Concentration Process Following every PPS call/prefunding request Clearing members are exposed to PPS banks when funds are on LCH Ltd's account at the PPS bank until funds have been transferred to the Concentration Bank.
Investment Activity 09:00 - 22:00 A minimum of 95% of the cash portfolio is invested on a secured basis.