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

Report date

Circular No.

LCH Circular No 3903

Service Circular No

SwapClear Circular No 158


7th November 2017


All LCH Ltd SwapClear members


LCH is writing to inform SwapClear Clearing Members that it is planning to implement the following rulebook changes 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 SwapClear Contracts are settlement payments.

ii) Changes to the General Regulations to require that all variation margin payments from US SwapClear Clearing Members associated with SwapClear Contracts are settlement payments.

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

LCH will provide further information on associated operational changes related to these changes in due course. These operational changes are scheduled to be implemented in 2018.

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

Further information about these changes can be found on the LCH Secure Area:

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

Kind regards,

SwapClear Relationship Management

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