Changes to the LCH model for Settled-to-Market FCM Contracts

Report date

Circular No.

LCH Circular No 3917


11th December 2017


All LCH Ltd members


Changes to the LCH model for Settled-to-Market FCM Contracts

Following the LCH Limited Rulebook Committee of 7 December 2017 and further to LCH Circular No 3903 and LCH Circular No 3907, LCH is writing to inform FCM Clearing Members and SwapClear Clearing Members that the following rule changes that were previously scheduled for implementation prior to the end of 2017 are now scheduled for go-live on 16 January 2018, subject to the materiality of consultation comments received from Clearing Members and ongoing regulatory review:  

  1. Changes to the FCM Rulebook to clarify that all variation margin payments associated with FCM SwapClear Contracts and FCM ForexClear Contracts are settlement payments.
  2. Changes to the General Regulations to require that all variation margin payments from US SwapClear Clearing Members associated with SwapClear Contracts are settlement payments.

Associated Rulebook changes are still available for consultation (further information in Circular 3914).
Clearing Members may use this notification to inform their clients accordingly.

Kind regards,

SwapClear Relationship Management

  • References herein to the ‘Rulebook’ are to the ‘Rulebook’ or ‘FCM Rulebook’ as applicable.
  • Terms used herein and not defined herein shall have the meanings applied in the Rulebook.