LCH.Clearnet Ltd – Collateral Management System – Cash Deposit Guidance

Report date

Company Circular No:

LCH.Clearnet Ltd Circular Number:  3518


18 September 2014


All LCH.Clearnet Ltd Clearing members


LCH.Clearnet Ltd (LCH.Clearnet) will introduce the following improvements to the Collateral Management System (CMS) with effect Sunday 21st September, providing all Clearing Members across all markets with improved guidance on Cash Deposit instructions.
In order to ensure all member cash collateral can be securely invested LCH.Clearnet has routinely required Clearing Members to provide ample notice of their intention to deposit additional eligible cash (over and above any outstanding margin calls).
In response to member requests for greater clarity of this requirement LCH.Clearnet is introducing the following new features to CMS:
•    A real-time view of the current Deposit Capacity* for each eligible currency on the specified collateral subaccount;
•    Enhanced straight through processing (STP) of deposit requests that are below the Deposit Capacity*;
•    A pre-warning where requests are above the Deposit Capacity* and as a result may be rejected; and
•    The ability for Clearing Member's to flag instructions for Backloading purposes.

* The Deposit Capacity for a given subaccount is a guideline amount in the specified currency that the Clearing House can accept for straight through processing (STP) at the time of input in CMS.
Members should note the following: Member's are able to deposit cash amounts over and above the subaccount's Deposit Capacity, such instructions will not STP and will be referred to LCH.Clearnet where they may be rejected.
SwapClear Clearing Members: Instructions for the SwapClear Additional Collateral Account (‘A' Account) and the SwapClear Pool (‘P' Account) will not support STP and will be processed as currently.
Release Timing: The release of this functionality will occur on Sunday 21st September and therefore the CMS application will be unavailable during this time.
Further details can be found here.
If you have any questions related to the implementation please email Collateral Services on