Changes to the LCH ForexClear variation margin payments for FCM Contracts

Report date

Circular No.

LCH Circular No 3907

Service Circular No.

ForexClear Circular No 5


28th November 2017


All LCH Ltd members


LCH is writing to inform ForexClear Clearing Members that it is planning to implement the following rulebook change prior to the end of 2017, subject to regulatory review:

i) Changes to the FCM Rulebook to clarify that all variation margin payments associated with FCM ForexClear Contracts are settlement payments.

These changes are being made pursuant to CFTC interpretation letter 17-51, published on 12th October 2017 (available here).

LCH is not aware of any upstream middleware or execution platform changes that are required in connection with these changes.

Where applicable, FCM Clearing Members may use this notification to inform their clients of these planned changes.

Kind regards,

ForexClear Relationship Management

  • References herein to a ‘ForexClear Clearing Member’ include an ‘FCM Clearing Member’ and references to a ‘ForexClear Contract’ include an ‘FCM ForexClear Contract’.
  • Terms used herein and not defined herein shall have the meaning applied in the Rulebook or FCM Rulebook (as applicable).