LCH Limited (“LCH”) Rule Change Committee of 31 October 2017 - Proposed Changes to the LCH Rulebook

Report date

Tue, 07/11/2017

Summary

Circular No.	LCH Circular No 3902
Date:	7th November 2017
To:	All LCH Ltd members

Body

Following the Rulebook Committee of 31 October 2017, LCH is proposing the following rulebook changes available on its secure website under the folder “Rulebook”.

Rulebook Changes - Consultation Period

The following rulebook changes are being made available for a consultation period of 4 weeks.

Title	Services Impacted
Auto-Repay Service Currently, a Clearing Member may only request that LCH provide its “auto-repay” service (as more specifically described in section 1.3.1(f) of the attached Section 3 of the Procedures) in respect of one or more of its Omnibus Segregated Accounts and/or its Proprietary Account. At the request of some of its Clearing Members, LCH has agreed to extend this so that a Clearing Member may also make such a request in respect of one or more of its Individual Segregated Accounts and/or one or more of its Custodial Segregated Accounts. The attached rule changes provide for such “auto-repay” service: Section 1.3.1(f) of Section 3 of the Procedures; and Section 1.1.2 of Section 4 of the Procedures.	SwapClear ForexClear EquityClear LSE Derivatives Markets Listed Interest Rates RepoClear
Reference Rates In the event a reference rate is, inter alia, unavailable or unfit for purpose, LCH may determine an alternative rate.	SwapClear ForexClear Listed Interest Rates

Title

Services Impacted

Auto-Repay Service

Currently, a Clearing Member may only request that LCH provide its “auto-repay” service (as more specifically described in section 1.3.1(f) of the attached Section 3 of the Procedures) in respect of one or more of its Omnibus Segregated Accounts and/or its Proprietary Account.

At the request of some of its Clearing Members, LCH has agreed to extend this so that a Clearing Member may also make such a request in respect of one or more of its Individual Segregated Accounts and/or one or more of its Custodial Segregated Accounts.

The attached rule changes provide for such “auto-repay” service:

Section 1.3.1(f) of Section 3 of the Procedures; and
Section 1.1.2 of Section 4 of the Procedures.

SwapClear

ForexClear

EquityClear

LSE Derivatives Markets

Listed Interest Rates

RepoClear

Reference Rates

In the event a reference rate is, inter alia, unavailable or unfit for purpose, LCH may determine an alternative rate.

SwapClear

ForexClear

Listed Interest Rates

The following rulebook changes are being made available for a consultation period of 2 weeks.

Title	Services Impacted
SwapClear Delivery Methods Per Clearing Member demand, LCH will permit clients to submit portfolio transfer and trade amendment requests via the SwapClear portal.	SwapClear

Title

Services Impacted

SwapClear Delivery Methods

Per Clearing Member demand, LCH will permit clients to submit portfolio transfer and trade amendment requests via the SwapClear portal.

SwapClear

The following rulebook changes are being made available for member notification.

Title	Services Impacted
Non-deliverable Interest Rate Swaps (KRW, INR, CNY) Provides ability for the clearing of KRW, INR and CNY non-deliverable interest rate swaps.	SwapClear

Title

Services Impacted

Non-deliverable Interest Rate Swaps (KRW, INR, CNY)

Provides ability for the clearing of KRW, INR and CNY non-deliverable interest rate swaps.

SwapClear

Clearing members that wish to comment on the proposed rulebook changes should email rulebook@lch.com. If you have any general questions on rulebook changes, please contact your usual LCH contact. Please note that all rulebook changes remain subject to regulatory approval and internal LCH risk approval.