LCH.Clearnet Ltd – EquityClear Fee Tariff Changes

Report date
Summary

Circular No.

LCH Circular No 3687

Service Circular No.

EquityClear Circular No 42

Date:

5th January 2016

Body

Dear Member

The LCH.Clearnet Limited ("LCH.Clearnet") EquityClear service is committed to enabling efficiencies and offering members the maximum economic benefit of consolidated clearing.   Our tariff structure is designed to benefit all of our members including through an Interoperable Incentive Discount.

Effective 1 February 2016, there will be changes to the EquityClear tariff, as outlined below.

Additional Optional Interoperable Incentive Discount

We are introducing an additional optional "Interoperable Incentive Discount" of 2p per trade which will apply to all volumes cleared where Clearing Members meet the following criteria:

1.    Clearing business from 4 trading venues through our EquityClear service; this must include 3 RIEs and 1 other trading venue; AND
2.    Clearing in excess of 100,000 and below 3,000,000 trades throughout the calendar month through the EquityClear service.

Itemised discounts will be included in the following month EquityClear clearing fee invoices.

Please note the existing Interoperable Incentive Discount which came into effect 1 February 2015 remains unaltered.  For details of this existing scheme and all other fees, please use this link

Revision of “Trade Adjustment Fee”

Where a CSD does not offer technical netting services, LCH.Clearnet provides a service to close out open deliveries and receipt instructions with different settlement dates to reduce the number of failed settlements.

Following a review of the existing volume of requests from members and the manual intervention required to facilitate the requests, LCH.Clearnet will be increasing the fee charged for this service to £50 for the initial pair off request and a further £10 per further instruction each day.

If you require additional information relating to the EquityClear service please contact:

Ian Mackenzie Tel: +44 (0) 20 7426 7265, Email ian.mackenzie@lchclearnet.com or

Tim Beckwith Tel: +44 (0) 207 426 7276 Email: tim.beckwith@lchclearnet.com

Yours Sincerely
Vikesh Patel, Chief Operating Officer, Equities