LCH Ltd EquityClear - Auto-Partial Settlement in Euroclear Finland and Euroclear Sweden

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Summary

Circular No.

LCH Circular No 4038

Date:

9th August 2019

To:

All LCH Ltd EquityClear Clearing Members
Body

We are pleased to inform you that, from the dates below, settlement of EquityClear contracts in Euroclear Finland and Euroclear Sweden will be subject to the new auto-partial settlement functionality offered by such CSDs (each date below, a Go-Live Date):

 

  • Euroclear Finland - Monday 30 September 2019*; and

     

  • Euroclear Sweden - Monday 18 November 2019.

 

The new auto-partial settlement functionality is where matched settlement instructions, at the relevant CSD, fail to settle on the intended settlement date and the CSD automatically settles such part of the settlement instruction as is possible (APS Functionality). LCH Ltd (LCH) will make use of the new APS Functionality within Euroclear Finland and Euroclear Sweden, which will increase liquidity and improve settlement rates across Finnish and Swedish markets, and requires its EquityClear members to do the same.  EquityClear members (and, where relevant, their clients) should:

 

  • discuss the APS Functionality and the types of settlement instructions required to make use of APS Functionality with (as applicable) their settlement agents, Euroclear Finland and/or Euroclear Sweden; and

     

  • ensure that they use the appropriate types of settlement instructions and account settings, to enable use of the APS Functionality within Euroclear Finland and Euroclear Sweden, from the respective Go-Live Date.

 

If an EquityClear member does not ensure the use of the APS Functionality in Euroclear Finland and Euroclear Sweden from the respective Go-Live Dates, then LCH may need to pass on any interest charges that it incurs, as a result of this, to the EquityClear member. 

If you require additional information, please contact EquityClear Operations (Email: EquityClear.Ops.Uk@lch.com; Telephone: +44 (0) 20 7426 7601).

 

Yours sincerely,

 Alex Krunic, Head of Equities, LCH Ltd

 

 * This date is subject to successful testing of the APS Functionality and we will notify you of any change to it.