LCH Ltd - LSEDM service closure

Report date

Circular No.

LCH Circular No 4055


17 October 2019


All EquityClear and LSEDM Members


Dear Member

Further to circular 4023 issued on 25 April 2019, we would like to remind our London Stock Exchange Derivative Market (LSEDM) clearing members that the LCH Limited (LCH) LSEDM clearing service will cease to clear trades from the close of the LCH clearing day (COB) on 29 November 2019. The LSEDM clearing service will remain open to manage any remaining open LSEDM positions until the COB on 6 December 2019 (the Relevant Withdrawal Date).

LCH has actively contacted its LSEDM clearing members to advise the choices they have with regard to any open positions, which are as follows:


  1. Clearing Members or their clients can trade out of open positions by the close of the trading day on 29 November 2019. Following the closure of positions, LCH will return margins and refundable default fund to clearing members
  2. Clearing Members can request LCH to transfer any open positions to X-clear. Clearing members or their clients must ensure they have the necessary clearing accounts at X-clear prior to any such transfer. All position transfers must be agreed with LCH before 22 November 2019.  


If any open positions remain on a LSEDM clearing member’s account after 29 November 2019, LCH will attempt to liquidate them using the Oslo Bors brokerage desk before the COB on the Relevant Withdrawal Date.  If this is not possible, LCH will be forced to close-out and cash settle any remaining open positions at a price determined by LCH, under Regulation 9 of the LCH Rulebook (

LCH strongly recommends that LSEDM clearing members and their clients make provision for the close out or transfer of their LSEDM positions by the close of trading on 29 November 2019.

If you require additional information, please contact Ian Mackenzie email: and Tel: +44 (0) 20 7426 7265.

Yours sincerely,



Head of Business Risk for RepoClear and EquityClear