LCH.Clearnet Limited Announce Launch of EnClear Block Futures

Report date

Circular No.

LCH Circular No 3551

Service Circular No.

EnClear Circular No 416


24 November 2014


Launch of EnClear Block Futures


Further to EnClear circular no. 409, dated 9 September 2014, LCH.Clearnet Limited ("LCH.Clearnet") is pleased to confirm that the reclassification date for EnClear swaps will be the 30 November 2014.

As of market open on 1 December 2014, all existing EnClear service open positions and all new trades will be cleared classified as Block Futures.

Products in scope for Futurisation are Dry Freight, Iron Ore, Steel, Coal, Containers and Fertilizers.

All other EnClear products will be suspended from the service effective 26 November 2014 and delisted by 31 January 2015 (see EnClear circular no. 414)

Block Futures will  be admitted for trading on two regulated trading venues: 

  • Baltex - an FCA approved Multilateral Trading Facility which will list Dry Freight
  • Cleartrade Exchange ("CLTX") - a Recognised Market Operator regulated by the Monetary Authority of Singapore, which will list all the EnClear products detailed below.

Trades will be reported to Baltex or Cleartrade before being submitted for clearing as futures by the LCH.Clearnet EnClear service.

LCH.Clearnet's contract specifications will remain the industry standard and economically identical to current contracts. LCH.Clearnet will continue to retain ownership of the fungible open interest for all LCH.Clearnet cleared EnClear contracts.

Following the reclassification of EnClear contracts on 30 November 2014, all cleared activity will be conducted under the LCH.Clearnet Ltd Rule Book, and will be margined in accordance with the EnClear margin methodology. 

The EnClear FCM service will be discontinued on 30 November 2014.  After this date, FCMs will no longer be able to directly clear for US clients with LCH.Clearnet under the FCM Rulebook. FCMs must instead become clients of a direct LCH.Clearnet Limited EnClear Clearing Member.

US clients will not have direct access to the trading venues but will operate through their FCMs. The contracts will be classified as Foreign Futures and will comply with the CFTC Part 30 regulations.

The futurisation migration plan, for the weekend of 28 November- 1 December 2014, can be found here

Please contact on +44 207 426 7460 or on +44  203 197 4572 if you have any questions.