LCH Ltd EquityClear “Net-Off” service

Report date
Summary

Circular No.

LCH Circular No 3821

Service Circular No

EquityClear Circular No 60

Date:

13th December 2016

To:

All LCH EquityClear Clearing Members

Body

Dear Member

We would like to remind you that LCH Ltd provides to its EquityClear clearing members the ability “net off” settlements in the same ISIN in the same CSD across different settlement dates.

The net off service is available where the CSD does not offer technical netting. We request Clearing Members adhere to the procedures listed below

1. No more than 5 ISIN requests per day, per member mnemonic

2. LCH will only process net off requests where the following conditions are met:

 - The member has a failed sale transaction(s) that has reached ISD+3

 - The member has one or more purchase transaction(s) that create a netting opportunity

3. The purchase transaction(s) must have failed for at least 1 business day

4. Net off request forms must be obtained from and submitted to equityclear.ops.uk@lch.com by no later than 12pm London time.

5. Please see our fees page for associated costs under Trade Adjustments.

6. LCH will make best efforts to process the net off request(s) as soon as possible on the day of receipt. However, it is possible that delays could occur due to excessive volume.

If you require further information please contact either:

Ian Mackenzie ian.mackenzie@lch.com ; + 44 (0) 207 426 7265
Tim Beckwith tim.beckwith@lch.com; + 44 (0) 207 426 7276

 

Yours Sincerely
Vikesh Patel, COO, Equities LCH.Ltd.