Interest on Collateral

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

Cash Collateral - Current Spreads

*Total rate is benchmark index minus spread

1Client Deposit Rate: the rate at which LCH will pay or charge interest on a credit cash balance on SwapClear Client accounts. (Only applies to cash balance in EUR, GBP, USD, all other currencies attract LDR).

2LDR - London Deposit Rate: the rate at which LCH will pay or charge interest on credit cash balances (excluding Default fund balances, SwapClear Client accounts and RepoClear deposits)

3RDR - RepoClear Deposit Rate - adjusted by a spread intended to achieve an approximate Target Return of 17.5bps to LCH.Clearnet Ltd. (Only applies to cash balance in EUR, GBP, USD, all other currencies attract LDR).

Securities

LCH applies a charge of 10 bp on the amount of allocated securities collateral (except for SwapClear clients which is free of charge)

Default funds