Closure of the LCH Ltd Freight Clearing Service

Report date

Circular No.

LCH Circular No 3874

Service Circular No.

EnClear Circular No 459


30th June 2017


All LCH CommodityClear Clearing Members


LCH Ltd would like to advise its Clearing Members that, following a review, it has decided to close its clearing service for Freight.

LCH will work with clearing members, brokers, end users and partners to manage the transfer or closure of all open interest and will withdraw the service by 29 December 2017  (the “Service Withdrawal Date”), being the date six months from the date of this notification, as required under Regulation 9 of the LCH Ltd Rulebook.

LCH is pleased to announce that it has agreed to offer the option to novate positions to EEX/ECC, who offers an existing freight clearing service. This will enable members and their clients to seamlessly novate open positions at LCH to EEX/ECC.  LCH, together with EEX/ECC, will manage the novation process for Members.  The novation date will be a day on or before the Service Withdrawal Date, such date to be determined closer to the time between clearing members, LCH and EEX/ECC.   

Any members who do not wish to novate their positions to EEX/ECC will be required to trade out of their positions at LCH in the normal manner before the Service Withdrawal Date.

Further information on the novation process to EEX/ECC will be provided shortly.

LCH believes this strategy is in the best interest of its members and would like to thank our members and their clients for their loyalty over the years.  

If you have any questions please do not hesitate to contact Isabella Kurek-Smith at  or +44 207 426 7460