Christmas and New Year 2017/18 Margin Calls and Margin Management
|
Circular No. |
LCH Circular No 3912 |
|
Date |
6th December 2017 |
|
To: |
All LCH Ltd Members |
The purpose of this circular is to provide detailed information on payment and margin management arrangements over the Christmas and New Year Period.
As a reminder, the below table shows the opening schedule for each of LCH’s services:
Christmas and New Year 2017/18 Margin Calls and Margin Management Services Opening Schedule
Margin Calls
LCH Limited will be closed on Monday 25th December 2017. No margin calls will be processed on this date as all LCH Limited clearing services are closed.
Margin calls from close of business Friday 22nd December 2017 relating to all clearing services will be called from your PPS bank for value Tuesday 26th December 2017 (except for T+1 currencies and those currencies where local holidays apply).
Margin calls from close of business Friday 29th December 2017 relating to all clearing services will be called from your PPS bank for value Tuesday 2nd January 2017 (except for T+1 currencies and those currencies where local holidays apply).
Margin Management
From Thursday 21st December through to close of business on Friday 29th December, LCH Limited may require up to 5 business days notice for substitutions of collateral (cash collateral versus non-cash collateral and cash versus cash collateral) in excess of £50mm. In addition to this, no substitutions will be permitted on 22nd, 26th and 29th December.
The above applies to both Clearing Member's Proprietary and Client business.
LCH Limited may not accept cash collateral in excess of a Clearing Member's Margin requirement after 10:00am GMT (EST for FCMs) on 22nd, 26th and 29th December 20171. Clearing Members may continue to provide cash collateral in response to a margin call.
SwapClear Specific Margin Management
Please find details below regarding LCH Limited’s capacity to register any Backloaded Trades from the 22nd December to 2nd January.
| Date | Opening Hours | Backloading Run | Backloading/ Portfolio Transfer Prefunding |
|---|---|---|---|
| 22nd Dec 2017 | Normal | No | Unlimited securities |
| 25th Dec 2017 | Closed | ||
| 26th Dec 2017 | Normal | No | Unlimited securities |
| 27th Dec 2017 | Normal | Prefunded Only | Max £50m / unlimited securities |
| 28th Dec 2017 | Normal | Prefunded Only | Max £50m / unlimited securities |
| 29th Dec 2017 | Normal | No | Unlimited securities |
| 1st Jan 2018 | Closed | ||
| 2nd Jan 2018 | Normal | Normal | Normal |
Reporting
Banking reports from close of business Friday 22nd December 2017 will be available for all Members on Saturday 23rd December 2017 from 06:00 (GMT).
Banking reports from close of business Friday 29th December 2017 will be available for all Members on Saturday 30th December 2017 from 06:00 (GMT).
Terms used herein shall have the meaning assigned to them in the Rulebook or FCM Rulebook, as applicable. References to Clearing Members used herein shall include FCM Clearing Members.
1 An FCM Clearing Member that offers the LSOC with Excess Model may continue to deliver excess initial margin to LCH Limited.
For further information, please contact:
Collateral Client Services
Collateral.ClientServices@lch.com
Nick McMillan
nick.mcmillan@lch.com
Senior Manager: Senior Operations and Client Services Manager
Elissa Holme
Elissa.Holme@lch.com
Head of CaLM LCH Limited