LCH to support the latest SWIFT MX (ISO 20022) Collateral Management messages

Dear Member,

LCH is pleased to announce the latest version (v4) of our CMS Messaging Services will be launched this November.

Earlier this month we became the first CCP to sign up to SWIFT’s ISO 20022 Harmonisation Charter (SWIFT press release) and today we are following up on that commitment by announcing that the November release will enhance the CMS Messaging Services further in-line with those principles: information sharing, adherence to market practice and publication on MyStandards.

As a reminder the optional CMS Standard Messaging Service, which launched in 2013, provides clearing members with a system-to-system interface to:

• instruct collateral movements to and from LCH;
• receive margin call notifications; and
• receive statement reporting for collateral holdings.

The service provides significant straight through processing (STP) benefits to Clearing Members looking to scale their collateral management operations beyond the traditional CMS online GUI. By offering a standards-based approach that other CCPs can follow, the service provides clearing members with greater efficiencies in particular for handling client clearing commitments with segregated collateral accounts.

In addition to the standard service, we also provide dedicated Custodial Seg* and Third Party Messaging Services. These allow SwapClear Clearing Members to affirm Custodial Seg* instructions and end clients (or their Custodian) to receive direct margin call notifications and statements of collateral holdings. For an overview of all the messaging offered please see the following document.

The latest version 4 release for these messages will provide greater standardisation with ISO 20022 market practice and enhanced detail for margin call notifications including improved support for PPS Aggregation and PPS Reform changes. LCH is also pleased to provide existing users of the service with continued support for the current version 3 messages, allowing greater flexibility for clearing members in their management system upgrade cycles.

For full details of these changes, including access to our usage guidelines please visit the CMS Messaging Service - Releases page on MyStandards (a free MyStandards login is required to view).

Kind regards,

Collateral Services

* The launch of the Custodial Seg account is subject to regulatory approval.

Email - collateral.services@lch.com