Clearing Member PPS Contingency Arrangements 2020

Report date

Circular No.

LCH Circular No 4077


30th January 2020


All LCH Clearing Members


Dear Member,

The LCH and LCH FCM Procedures state that Clearing Members must ensure they have PPS contingency arrangements in place to ensure that margin obligations can continue to be met in the event of a failure of their nominated PPS bank(s). Evidence of these arrangements will be required on an ongoing basis at LCH’s request.   

Accordingly, LCH will be conducting a test of Clearing Members' PPS contingency arrangements in 2020. This will be conducted on the House account across EUR, GBP and USD currencies. The test will require each member to fund directly to LCH's SSIs. We require you to provide us your SSIs for the purpose of repayment of the funds, once the test is completed.

We request that all members complete at return to us the Contingency SSI Form located here for each of their Clearing mnemonics. Please return this by 28th February 2020 to

Each Clearing Member will then be contacted individually with further details of the testing.

Participation from all clearing members is mandatory.

For further information, please contact the below:

PPS Contingency Test Team
+44 (0) 207 426 7505

Nick McMillan
UK Head of Collateral Operations and Client Services