Annual Account Structure Fees SA
Effective from 21 December 2017
LCH 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 SA offers members a choice of ISA (Individual Segregated Account) and OSA (Omnibus Segregated Account) accounts.
Click here to find out more about the choice of accounts that, subject to regulatory approval, LCH offers.
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 | €3,500 | €3,500 | €3,500* |
| 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 |
(**) Account structure fees for Listed Derivatives and Cash Equities will be waived until 31st December 2017.
CDSClear charges a semi-annual account fee for the 6 month periods beginning 1 January and 1 July. Account fees are calculated on the day immediately preceding each 6 month period, being 31 December and 30 June of each year (‘Billing Points’).
The account fee is calculated based on the number of Live Accounts^ of the relevant type within the CDSClear service on the last day of the previous period (i.e. 31 December and 30 June).
*OSA Gross Account Charges. Main value segregated collateral account operated by the Clearing Broker. Only one per Clearing Broker.
The OSA Gross* is charged at €0/€0.
Additional client specific** OSA Gross arrangements will be charged at €1,750 for each 6 month period (comparison annual cost €3,500).
^ ‘Live Account’ means any account that has been onboarded and could accept transactions for clearing on the calculation date.
As part of LCH SA's EMIR authorisation, we have commissioned legal opinions in respect of each jurisdiction in which we have Clearing Members. Executed copies are made available to our Clearing Members.
As far as the Cash Markets, Derivatives markets, Fixed Income products and Triparty Repo clearing services are concerned:
The executed copies of the French, Belgian, English, Dutch, German, Finnish, Swedish, Luxembourg, Italian, Spanish, Portuguese,Danish legal opinions are currently available. The Swiss one, will be made available in due course.
The legal opinions are made available to Clearing Members on demand, on a non-reliance basis, and those which are currently in draft form are therefore subject to possible change.
Queries relating to legal matters should be directed to Exchange.ams@lch.com
As far as the CDS are concerned:
The executed copies of the French, English and German legal opinions remain available on the secure area.
Queries relating to legal matters should be directed to cdsclear@lch.com
It is important that clearing members familiarise themselves with the legal implications associated with these ISA and OSA accounts.
- On the creation of a new account, the Fee becomes immediately payable
- 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
LCH Account Structures for Indirect Client Clearing
LCH SA offers indirect clearing arrangements for derivatives as defined by the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive II (MiFID II).
Two types of indirect client account models are proposed: Net Omnibus Segregated Account (NOSA) and Gross Omnibus Segregated Account (GOSA).
Annual account fees
From 1 January 2018, a yearly fee is charged for each Indirect account structure as indicated in the table below.
|
Business line |
NOSA |
GOSA |
|
Listed Derivatives |
€1,200 |
€3,500 |
- On the creation of a new account, the Fee becomes immediately payable
- The Fees are non-refundable once paid, no refunds for partial years
- No discounts for multiple accounts
- No adjustments for multiple collateral accounts
Legal implications - Account Structures
Click here to see the current Cash and Derivatives markets and Fixed Income products Rulebook.