Non deliverable Interest Rate Swaps Membership and Client Fee Tariffs
LCH Circular No 3941
6th April 2018
All LCH Limited SwapClear Clearing Members
Dear SwapClear Member,
In anticipation of the launch of clearing for SwapClear Contracts that are non-deliverable interest rate swaps (“NDIRS”), LCH Limited is writing to inform SwapClear Clearing Members of the associated fee structure. The clearing of NDIRS, and the associated fees set out below, remain subject to regulatory approval.
In order to facilitate testing and implementation of NDIRS clearing, the Clearing House will not charge fees to Clearing Members or Clients for the clearing of NDIRS until 1 January 2019* (including registration, portfolio transfer and compression fees).
Clearing Member - Bronze Tariff, Silver Tariff and Gold Tariff
A SwapClear Clearing Member or Member Group that has elected the Bronze Tariff, the Silver Tariff or Gold Tariff that wishes to clear NDIRS may choose either of the following fee plans:
For an annual fee of £225,000 a SwapClear Clearing Member or Member Group may clear an unlimited amount of NDIRS denominated in the following currencies: KRW, INR and CNY. Where additional currencies are made available to clear, SwapClear Clearing Members or Member Groups will be entitled to elect to pay an additional fee to clear NDIRS in those currencies.
A SwapClear Clearing Member or Member Group may clear a NDIRS for a £75 registration fee plus a monthly maintenance fee of £6 per open contract that is a NDIRS.
Clearing Member - Platinum Tariff
All SwapClear Clearing Members or Member Groups that have elected the Platinum Tariff will have their annual fee increased from £2,550,000 to £2,775,000.
SwapClear Client Clearing Fees
The fees applicable for the clearing of NDIRS for SwapClear Clearing Clients or FCM Clients will be the same as those currently payable by SwapClear Clearing Members for SwapClear Contracts that are not NDIRS (or Inflation ZCIIS) and will be payable in USD.
The Clearing House charges all fees to Clearing Members. Clearing Members individually make pricing arrangements with Clients.
LCH Relationship Management
Terms used in this circular have the meaning assigned to them in either the Rulebook or FCM Rulebook (as applicable) or at www.lch.com. The terms ‘SwapClear Clearing Member’ and ‘SwapClear Contract’ include an ‘FCM Clearing Member’ and an ‘FCM SwapClear Contract’.
*For technical reasons, maintenance fees will be payable from go-live for SwapClear Contracts entered with respect to SwapClear Clearing Clients and FCM Clients where the fees associated are payable prior to the end of 2018.