LTD Fees

Interest on Collateral Periodic & One Off Fees Annual Account Structure Fees

Interest on collateral is based on daily collateral balances placed by members at LCH. Invoices are raised monthly and settlement occurs via PPS 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

Currency

Overnight index

Cash Collateral  Spread (bps)*

CDR (1)

LDR (2)

RDR (3)

GBP

SONIA

0

21

9

EUR

EONIA

30

75

73

USD

FEDFUND

10

20

17

CAD

CORRA

 

30

 

CHF

SARON

 

28

 

AUD

RBACOR

 

15

 

DKK

DETNTIN

 

30

 

JPY

TONAR

 

30

 

NOK

NOWA

 

30

 

SEK

STIBOR

 

30

 
         

Effective Date

01/11/2017

22/12/2017

22/12/2017

End Date

31/01/2018

19/01/2018

19/01/2018

* Total rate is benchmark index minus spread

(1) Client Deposit Rate (CDR): 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).

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

(3) RepoClear Deposit Rate (RDR): The rate at which LCH will pay or charge interest on credit cash balances on RepoClear accounts. (Only applies to cash balance in EUR, GBP, USD, all other currencies attract LDR).

Cash Collateral – Upcoming Spreads

Currency

Overnight index

Cash Collateral  Spread (bps)*

CDR (1)

LDR (2)

RDR (3)

GBP

SONIA

0

23

15

EUR

EONIA

30

55

53

USD

FEDFUND

10

20

17

CAD

CORRA

 

30

 

CHF

SARON

 

28

 

AUD

RBACOR

 

15

 

DKK

DETNTIN

 

30

 

JPY

TONAR

 

30

 

NOK

NOWA

 

30

 

SEK

STIBOR

 

30

 
         

Effective Date

01/11/2017

22/01/2018

22/01/2018

End Date

31/01/2018

21/02/2018

21/02/2018

* Total rate is benchmark index minus spread

(1) Client Deposit Rate (CDR): 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).

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

(3) RepoClear Deposit Rate (RDR): The rate at which LCH will pay or charge interest on credit cash balances on RepoClear accounts. (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

Currency 

Unsecured
overnight
index

Default Collateral Spread (bps)

 EquityClear 

 SwapClear 

Listed Rates

 RepoClear 

 Commodities 

 ForexClear 

GBP

SONIA

10

10

10

10

10

N/A

EUR

EONIA

N/A

N/A

N/A

20

N/A

N/A

USD

FEDFUND

N/A

N/A

N/A

N/A

5

0

a. Membership

£1,500 plus VAT (one-time joining fee)

b. Connectivity

To receive operational reports from the Clearing House, members must have appropriate direct or indirect communications links.

The Clearing House provides direct links, typically 2 x 2MB leased lines. The one-off and ongoing costs to members are as quoted in each instance by the telecommunications supplier, such as BT. These costs will vary according to capacity, configuration, member's location and building infrastructure.

Alternative VPN connections may be possible in some cases: these are provided by the relevant supplier. The Clearing House will charge for implementation support of such VPN links on an individual quotation basis.

Members may also link indirectly to receive Clearing House reports via their communications links to CREST and/or Euronext.liffe.

c. Software

Banking, RepoClear® and SwapClear® reports are delivered in Business Objects report or in text file format. Clearing Members who wish to use the Business Objects report format should purchase software licence(s) directly from the supplier as appropriate

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 Ltd and SA offers members a choice of Individually Segregated and Omnibus Segregated accounts.

Find out more about the choice of accounts that LCH offers (Last updated January 2014).

For the purposes of all Security Deeds and Deeds of Release, Reassignment and Termination entered into by LCH Limited in preparation for LCH Ltd authorisation under EMIR (all such deeds, the ‘Deeds'), the Authorisation Date (as defined in the Deeds) will be 12 June 2014, such date being the ‘New Authorisation Date' for the purposes of the Deeds. This notification constitutes a notification for the purposes of (a) clause 7 of each Deed of Release, Reassignment and Termination that relates to a Tripartite Deed of Assignment, (b) clause 9 of each Deed of Release, Reassignment and Termination that relates to a Security Trustee Deed of Assignment, and (c) clause 9 of each Security Deed.

View a copy of the Security Deed.

 

 

Annual Account Fees

An annual fee is charged for the account types described below:

1.    All Services except SwapClear and ForexClear

Denominated in £

 

 

ISA

 

Net OSA

Gross OSA

IGA

INA

 

EquityClear

 

3,000

1,000

Account not offered

3,000

1,000

 

Listed Interest Rates*

 

3,000

1,000

3,000

3,000

 

1,000

 

 

RepoClear

 

3,000

1,000

Account not offered

Account not offered

Account not offered

 

LSE Derivative Markets

 

3,000

1,000

3,000

3,000

1,000

* For Listed Interest Rates accounts only, the first OSA is charged at £0, and subsequent OSA arrangements will be charged at an annual fee of £1,000 per Net OSA, £3,000 per Gross OSA and £1,000 per INA.

2.    SwapClear and ForexClear Account Charges

SwapClear and ForexClear charge 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’).

 

a.    ISA and IGA Account Charges

Denominated in

 

6 Month Billing Charge

Comparison Annual Cost

Accounts package

Per account

Capped cost per package

Per account

Capped cost
per package

 

1 – 50

1,750

50,000

3,500

100,000

 

51 – 100

1,000

60,000

2,000

120,000

 

101 – 200

 

600

 

75,000

 

1,200

 

150,000

200+

375

-

750

-

The account fee is calculated based on the number of Live Accounts of the relevant type within the SwapClear or ForexClear service on the last day of the previous period (i.e. 31 December and 30 June).

Account fees will be charged at the lower of (a) the number of accounts multiplied by the banded cost per account, and (b) the capped cost per package.

Package discounts apply in relation to each Client or Client Group (as applicable) considering all accounts opened across all Clearing Members for such Client or Client Group (as applicable). Once the account cost is calculated, it will be billed to the client’s respective Clearing Member(s). Clearing Members are responsible for pricing arrangements between themselves and their clients.

 

b.    Gross OSA Account Charges

The first OSA Gross is charged at €0/€0, subsequent OSA Gross arrangements will be charged at €1,750 for each 6 month period (comparison annual cost €3,500).
 

c.    Net OSA and INA Account Charges

Each Net OSA and INA is charged at €1,750 for each 6 month period (comparison annual cost €3,500).

 

d.    Custodial Segregated Account Charges (SwapClear only)

LCH will charge a Clearing Member who has an open Custodial Segregated Account the following account fee on each Billing Point (i.e. 31 December and 30 June of each year):

  • A fee of €750 per account at the first Billing Point after account opening.
  • At the second Billing Point and each subsequent Billing Point, the applicable ‘6 Month Billing Charge’ fee (shown in column two in the table below) per account.
  • No fee applies for the period between account opening and the first Billing Point.  

    Denominated in

 

Total Annualised SwapClear Client Clearing
Fees* prior to the relevant Billing Point

 

6 Month Billing
Charge

Comparison
Annual Cost

 

0 – 50,000

 

5,000

10,000

 

50,001 – 200,000

 

2,500

5,000

 

201,000 – 1,250,000

 

1,250

2,500

 

>1,250,000

 

 

750

 

 

1,500

 

*‘Total Annualised SwapClear Client Clearing Fees‘ means the total SwapClear Client Clearing Fees which LCH has billed in relation to the Client or Client Group (as applicable) in the 6 month period prior to the relevant Billing Point (converted to an annualised amount).

Custodial Segregated Accounts are currently only offered by the SwapClear service.
 

Terms and conditions

LCH charges its Clearing Members and Clearing Members make their own pricing arrangements with their clients.

The fees do not apply to Clearing Member Proprietary Accounts.

The fees are non-refundable once paid, no refunds for partial years.

No discounts for multiple accounts, except where explicitly specified for SwapClear and ForexClear fee plans.

On the creation of a new account, the account fee becomes immediately payable, and then annually on the anniversary of the creation date thereafter, except for SwapClear and ForexClear accounts where fees are payable on a semi-annual basis.

 

Definitions

Terms which begin with a capital letter, but are not defined, herein have the meaning assigned in the LCH rulebook at www.lch.com/rules-regulations/rulebooks/ltd.

 

‘Client’ means a direct client of a Clearing Member for whom such Clearing Member maintains the relevant client account with LCH.

‘Client Group’ means all Clients who are managed as a group by the same investment or administrative manager (as determined by LCH).

IGA’ means an Indirect Gross Account.

INA’ means an Indirect Net Account.

ISA’ means an Individual Segregated Account.

‘Live Account’ means any relevant account a Clearing Member has been opened with LCH which could accept transactions for clearing on the calculation date.

OSA’ means an Omnibus Segregated Account.

SwapClear Client Clearing Fees‘ means all SwapClear client clearing, compression and account fees (except Custodial Segregated Account fees) relating to the Client or Client Group (as applicable), irrespective of account type and Clearing Member.

Legal Implications

It is important  that clearing members familiarise themselves with the legal implications associated with these ISA and OSA accounts. LCH Ltd has produced disclosure for the purposes of Article 39(7) of EMIR,  and Regulation 34(2)(a)  of the FSMA 2000 (Recognition Requirements, etc) Regulations 2001 which can be accessed by clicking on the links below.

Legal Implications - Account Arrangements (Article 39.7 disclosure)

Legal Implications - Account Arrangements (Article 39.7 disclosure  - FCM business)

These disclosure statements include links to jurisdictional legal opinions which form part of such disclosure.  These legal opinions are also available within the jurisdictional legal opinions heading above and contain details of the main legal implications of the respective levels of segregation offered including information on the insolvency law applicable in the relevant jurisdictions (including, but not limited to, information on how the default rules interact with applicable local insolvency laws).

Click here to view LCH Ltd EMIR compliant Rulebook

Jurisdictional Risk Disclosure

The following risk disclosure notice must be provided by all clearing members that clear for clients through the SwapClear, ForexClear or EnClear (Freight Division) services to clients that are incorporated in Singapore or operate through a Singaporean branch.

Singapore Clearing Client Disclosure

Rates Service Default Management Disclosure

The following disclosure notice must be provided by all clearing members to each clearing client, and all clearing members must provide confirmation to the Clearing House that it has discharged this obligation with respect to each of its clearing clients.

Rates Service Default Management Disclosure

FCM Rates Service Default Management Disclosure