LCH Limited ("LCH"), EquityClear fees revision

Report date
Summary

Circular No.

LCH Circular No 4043

Date:

5 September 2019

To:

All LCH Ltd EquityClear Clearing Members

Body

Dear Member,

 

LCH Limited (LCH) advises its EquityClear clearing members (ECMs) of two fee changes, effective 1 October 2019:

 

  1. OTC Transactions – LCH is required to perform additional price and risk analysis and monitoring for cleared OTC transactions in the EquityClear service. As a result, LCH is implementing an ECM clearing fee of 8 pence per OTC transaction registered for clearing in its name. The new fee will be included in the clearing fee invoice from November 2019 and will be available in the new monthly fees report: ‘EREPB0007 – Fee Basis Breakdown.txt’.

     

  2. Non-Delivery Penalty Charge - Where an ECM fails to take delivery of securities from LCH, as required under the relevant EquityClear Contract and the LCH rulebook, LCH will charge such ECM a penalty charge for each day the failure continues. The penalty charge will be calculated as follows: (a) the value of the outstanding cash payment, which is due from the ECM to LCH and which corresponds to the securities delivery failure, multiplied by (b) the applicable interest rate determined by LCH (e.g. SONIA where the currency of the cash payment is GBP, EONIA where the currency of the cash payment is Euro) + 1%. Any such charges will be included in the clearing fee invoice from November 2019.  

 

If you require additional information regarding these fee changes or the EquityClear service, please contact:

Ian Mackenzie, Tel: + 44 (0) 20 7426 7265, email Ian.mackenzie@lch.com

Alex Krunic, Tel: + 44 (0) 20 7392 8345, email Alex.krunic@lch.com

Yours sincerely,

Alex Krunic, Head of Equities, LCH Ltd