SA Fees on Collateral

 

Effective from 1 November 2021

 

Interest on collateral is based on daily collateral balances placed by members at LCH. Invoices are raised monthly and settlement occurs via Target 2 three business days after the month end. If there is a currency bank holiday, settlement takes place on the next available business day.

 

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

Cash Collateral – Current Spreads

LCH SA applies the following interest rates:

Currency

Unsecured overnight index

Cash Collateral Fee / Spread (bps)*

All Markets**

CDSClear Clients

Default funds***

EUR

€STR

21.5

6.5

11.5

GBP

SONIA

35

20

 

USD

FEDFUND

30

15

 

* Total rate is benchmark index minus spread

** ‘All markets’ encompass CDSClear (House activity only), Listed Derivatives, Listed Commodities, EquityClear, RepoClear and €GCPlus (House & Clients activities).

*** ‘Default fund’ contribution in EUR cash only.

LCH SA will continually review this against market conditions.

Securities - Current Spreads

Securities Collateral Fee / Spread (bps) - All Markets*  

 

Securities

Full Title Transfer

Pledge

Triparty**

CDSClear Clients

Government Securities

Australia

13

N/A

N/A

10
Austria 11 15 9.5 10
Belgium 11 15 9.5 10
Canada 13 N/A N/A 10
Denmark 13 N/A N/A 10
Finland 11 15 N/A 10
France 11 15 9.5 10
Germany 11 15 9.5 10
Italy 11 15 9.5 10
Japan 13 N/A N/A 10
Netherlands 11 15 N/A 10
Norway 13 N/A N/A 10
Portugal 11 N/A N/A 10
Spain 11 15 9.5 10
Sweden 13 N/A N/A 10
Switzerland 13 N/A N/A 10
UK 11 15 N/A 10
USA 11 15 N/A 10

Supranationals

European Financial Stability Facility

13

15

N/A

10

European Stability Mechanism

13

15

N/A

10

European Investment Bank

13

15

N/A

10

European Union

13

15

9.5

10

Investment Bank for Reconstruction and Development

13

15

N/A

10

Agencies

Rentenbank

13

15

N/A

10

Kreditanstalt für Wiederaufbau

13

15

9.5

10

Equities

All (as listed in Haircut Schedule)

13

N/A

N/A

N/A

* ‘All markets’ encompass CDSClear (House activity only), EquityClear, CommodityClear, RepoClear and €GCPlus (House & Clients activities).

** Effective 14 December 2020 for EquityClear, CommodityClear, RepoClear and €GCPlus (House & Clients activities).

Central Bank Guarantee

The fee LCH SA charges on the outstanding amount of Collateral constituted  by way of Central Bank Guarantee will be calculated on a daily basis at the rate of 15bps per annum. 

Collateral Management

LCH SA charges a fee for each movement of collateral securities depending on the type of securities and the depository:

Equities:

  • Deposited in EUROCLEAR France, Interbolsa                                                      15 euros
  • Deposited in EUROCLEAR Bank, Clearstream Banking Luxembourg         25 euros

 

Bonds:

  • Deposited in EUROCLEAR France, EUROCLEAR Netherlands, NBB, Interbolsa           10 euros
  • Deposited in EUROCLEAR Bank, Clearstream Banking Luxembourg                              20 euros

 

Single Pledgor Pledged Account

All fees linked to the opening and the use of a Single Pledgor Pledged Account, are re-charged by LCH SA to the Member benefiting from such account

Paying Agent Report

An added-value service for the paying agent has been created; two reports are available:

  • First report. Net payment position document; this consolidated report provides, for a given paying agent:
    • The entire list of its clients’ payments,
    • The payment limits (for each client),
    • The eventual excess amount paid over the limit.
  • Second report. Cash document of exceeded payment limits; this specific report focuses, for a given paying agent, on all clients that exceed their payment limit.

  • The subscription to this service is charged €530 per year for both reports (it is not possible to subscribe to only one report).

    For further information on this service, please send your request to treasury.ops.fr@lch.com

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