LCH Ltd EquityClear: 2022 fee changes
|
Circular No. |
LCH Circular No 4196 |
|
Date |
15th February 2022 |
|
To: |
All LCH Ltd EquityClear Members |
Dear LCH Ltd EquityClear Clearing Member,
We would like to advise you of the following changes to the LCH Limited (LCH) EquityClear fees, effective 1st March 2022.
Variable Fail Charge and Rebate:
EquityClear will remove its variable fails fees and related rebates in all markets.
Clearing Fees:
Bands 3 and 4: These bands will be merged. Fees for this newly created band will be £0.011 per trade side cleared. The ADV range for this newly created Band 3 will be ≥70,000 to <350,000.
Current Band 5 (new Band 4): The minimum average daily volume (ADV) required to qualify for the band will reduce from ≥400,000 to ≥350,000.
Current Band 6 (new Band 5): The minimum average daily volume (ADV) required to qualify for the band will reduce from ≥500,000 to ≥450,000.
The new fee structure is detailed in full below. All other banding criteria will remain unchanged.
Growth and consolidation rebate:
A rebate will be paid to qualifying clearing members based on a combination of their highest clearing band as calculated in 2021, their full-year ADV in 2021 and their 6-month rolling average ADV in the twelve month period following 1st March 2022:
1. If the following criteria are met, a consolidation rebate equal to 100% of the clearing fees and OTC clearing fees paid during the 6-month rolling average calculation period (mentioned below) will be paid, subject to a cap of £600,000:
- A member’s highest full-month ADV in 2021 was ≥250,000
- At any point in the 12-month period following 1st March 2022 a member’s 6-month rolling average ADV represents 150% of the member’s full-year ADV for 2021
2. If the following criteria are met, a consolidation rebate equal to 100% of the clearing fees and OTC clearing fees paid during the 6-month rolling average calculation period (mentioned below) will be paid, subject to a cap of £300,000:
- A member’s highest full-month ADV in 2021 was <250,000
- At any point in the 12-month period following 1st March 2022 a member’s 6-month rolling average ADV increases by 300,000 trade sides vs the member’s ADV for 2021
Current clearing fee structure
|
Current |
ADV |
Primary Exchange |
Other Trade Source |
CSD |
Fee (£) Per Trade |
|
Band 1 |
>0 |
>0 |
>0 |
>0 |
0.06 |
|
Band 2 |
≥ 20,000 |
≥ 3 |
≥1 |
≥1 |
0.02 |
|
Band 3 |
≥ 125,000 |
≥ 3 |
≥1 |
≥1 |
0.0175 |
|
Band 4 |
≥ 250,000 |
≥ 3 |
≥ 3 |
≥4 |
0.011 |
|
Band 5 |
≥ 400,000 |
≥ 3 |
≥ 3 |
≥4 |
0.0075 |
|
Band 6 |
≥ 500,000 |
≥ 3 |
≥ 3 |
≥4 |
0.005 |
|
Band 7 |
≥ 750,000 |
≥ 3 |
≥ 3 |
≥4 |
0.0045 |
|
Band 8 |
≥ 925,000 |
≥ 3 |
≥ 3 |
≥4 |
0.00325 |
|
Band 9 |
≥ 1,500,000 |
≥ 3 |
≥ 3 |
≥4 |
0.003125 |
|
Band 10 |
≥ 2,500,000 |
≥ 3 |
≥ 3 |
≥7 |
0.00275 |
|
Band 11 |
≥ 2,500,000 |
≥ 3 |
≥ 3 |
≥10 |
0.00225 |
Clearing fee structure from 1st March 2022
|
From 1st March 2022 |
ADV |
Primary Exchange |
Other Trade Source |
CSD |
Fee (£) Per Trade |
|
Band 1 |
>0 |
>0 |
>0 |
>0 |
0.06 |
|
Band 2 |
≥ 20,000 |
≥ 3 |
≥1 |
≥1 |
0.02 |
|
Band 3 |
≥ 70,000 |
≥ 3 |
≥ 3 |
≥4 |
0.011 |
|
Band 4 |
≥ 350,000 |
≥ 3 |
≥ 3 |
≥4 |
0.0075 |
|
Band 5 |
≥ 450,000 |
≥ 3 |
≥ 3 |
≥4 |
0.005 |
|
Band 6 |
≥ 750,000 |
≥ 3 |
≥ 3 |
≥4 |
0.0045 |
|
Band 7 |
≥ 925,000 |
≥ 3 |
≥ 3 |
≥4 |
0.00325 |
|
Band 8 |
≥ 1,500,000 |
≥ 3 |
≥ 3 |
≥4 |
0.003125 |
|
Band 9 |
≥ 2,500,000 |
≥ 3 |
≥ 3 |
≥7 |
0.00275 |
|
Band 10 |
≥ 2,500,000 |
≥ 3 |
≥ 3 |
≥10 |
0.00225 |
For additional information or any questions, please contact: securitiesclientserviceLTD@lch.com