"LCH.Clearnet Ltd - Banking System Upgrade"

Report date
Summary
Company Circular No:

LCH.Clearnet Ltd Circular No 3469

Service Circular No:

SwapClear Circular No 124

Date: 16 May 2014
To: All LCH.Clearnet Ltd SwapClear Clearing Members
Body

As part of the expansion into the Asia-Pacific timezone, LCH.Clearnet’s SwapClear service will be enhancing its trade validation workflow to facilitate the trade registration of trades submitted for clearing during the early morning trading hours in Australia.

Due to regional overlaps there are instances during periods of the year where, for example, a trade submitted for clearing on a Tuesday morning at 09:15 in Sydney (Monday 22:15 in London), will be registered as cleared when the SwapClear service opens on Tuesday at 07:30 (London). For the avoidance of doubt, in this instance trades are submitted with a Trade Date of Tuesday when the SwapClear service is still operating on the Monday business day.

From May 19, 2014 SwapClear will be implementing changes to its validation processes to allow trades presented for clearing with a future date, to be considered for clearing through the current Straight-Through Processing (“STP”) routine. SwapClear member reports will reflect the trade date of the trade as the SwapClear clearing date, therefore in the example above, the trade will be reported in SwapClear member reports with a trade date of Monday.

Timezones

This change will not impact the economics, cashflows or risk profile of the trade. LCH.Clearnet has received confirmation from the Swap Data Repositories (“SDRs”) that this change will have no impact on the regulatory reporting requirements.

For queries please contact:

SwapClear Client Services LCH.Clearnet Limited Tel:
Email: swapclearclientservices@lchclearnet.com