LCH.Clearnet Ltd – EquityClear Fee Tariff Changes

Report date
Summary

Circular No.

LCH Circular No 3575

Service Circular No

EquityClear Circular No 23

Date:

19 December 2014
To:

All EquityClear Members
Body

Dear Member

The LCH.Clearnet Limited ("LCH.Clearnet") EquityClear service is committed to offering its members and potential new members a competitive tariff that meets the needs of all of market participants.

 

Clearing Fees

From 1 February 2015 we will implement a revised tariff structure.

From

0

30,001

60,001

100,001

200,001

500,001

Fee

5p

4p

3p

0.3p

0.1p

0p

 

CFD's will be cleared at a flat rate of 10p per cleared trade.

 

Interoperable Incentive Discount

We are introducing a new "Interoperable Incentive Discount" which will benefit clearing members with a reduction of 15% on their EquityClear clearing fee, and an additional 10% on their LCH.Clearnet SA clearing fee, where they meet the following criteria:

  1. Where they clear business on 6 Trading venues offered through our EquityClear service, which must include 3 RIEs and 3 other trading venues AND
  2. Where they provide cleared cash equity volume on Euronext Paris & Euronext Amsterdam segments of our LCH.Clearnet SA service offering AND
  3. Where members clear in excess of 3,000,000 trades throughout the month, through our EquityClear service.

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

For all EquityClear fees please use this link

 

Fails fines compensation - Subject to regulatory approval

The EquityClear service will compensate clearing members, via the ad valorem charge, where EquityClear fails to deliver securities to its clearing members. This compensation is in the spirit of Article 7 [Measures to address settlement fails] of the CSD Regulation (CSDR).

Ad valorem compensation will be credited to members where EquityClear is net failing to deliver the Clearing Member. Compensation will be calculated on Monthly basis and credited to members

All credits and debits will be itemised within the existing month end report EREP0028- Fees- Fails charges.

 

Membership Fees

Membership fees will be as set out below.

Membership fee

£13,000 per annum (assessed and collected in advance annually. Pro rata per month or part month)     

Charge per NCM

£1,600 per annum (assessed and collected in advance annually. Pro rata per month or part month)

 

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

Roland Chai, Head of Equities, LCH.Clearnet Ltd