Christmas and New Year 2018/19 Margin Calls and Margin Management

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 applicable to all LCH’s clearing services.:

Christmas and New Year 2018/19 Margin Calls and Margin Management Services Opening Schedule

Margin Calls

LCH Limited will be closed on Tuesday 25th December 2018. No margin calls will be processed on this date as all LCH Limited clearing services are closed.

LCH Limited will be closed on Tuesday 1st January 2019. No margin calls will be processed on this date as all LCH Limited clearing services are closed.

Margin calls from close of business Monday 24th December 2018 relating to all clearing services will be called from your PPS bank for value Wednesday 26th December 2018 (except for T+1 currencies and those currencies where local holidays apply).

Margin calls from close of business Monday 31st December 2018 relating to all clearing services will be called from your PPS bank for value Wednesday 2nd January 2018 (except for T+1 currencies and those currencies where local holidays apply).

Margin Management

Margin Management

From Thursday 20th December through to close of business on Monday 31st 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 24th, 26th and 31st 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 24th, 26th and 31st December 2018 (1). Clearing Members may continue to provide cash collateral in response to a margin call.

(1) An FCM Clearing Member that offers the LSOC with Excess Model may continue to deliver excess initial margin to LCH Limited.

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.

^ Bulk Events include Portfolio Transfers, Backloading and ACSP Compression runs

* or USD/ EUR equivalent

Reporting

Banking reports from close of business Monday 24th December 2018 will be available for all Members on Tuesday 25th December 2018 from 06:00 (GMT).

Banking reports from close of business Monday 31st December 2018 will be available for all Members on Tuesday 01st January 2019 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.


For further information, please contact:

Collateral Client Services
Collateral.ClientServices@lch.com

Nick McMillan
Nick.McMillan@lch.com
UK Head of Collateral Operations Client Services

Elissa Holme
Elissa.Holme@lch.com
Head of CaLM LCH Limited