Novation of LCH CommodityClear Freight Contracts to European Commodity Clearing AG (ECC)

Report date

Circular No.

LCH Circular No 3905

Service Circular No

EnClear Circular No 463


10th November 2017


All LCH Ltd EnClear Members


Further to LCH Circular no. 3874, LCH would like to confirm that the novation to ECC of CommodityClear Freight contracts, settling from January 2018 and beyond, will take place on Thursday 16th November 2017

The timetable for novation day will be as follows:

  • The Freight clearing service will open for normal trading at 07:00 hrs London
  • The Freight service will close earlier at 12:00hrs London. The confirmation - only period will therefore start at 11.30 hrs.
  • Intra day margin calls will be processed as normal
  • At the end of day, LCH will close all open futures positions for settlement in January 2018 and beyond, and cash settle them at the end of the day price.
  • All 2018 and later options positions will be abandoned
  • Subsequently ECC will create new futures positions in the respective accounts of Clearing Members at ECC, at the same end of day prices. The same options positions will be reopened at ECC without further premium collection.
  • Any open November and December 2017 positions at LCH will be marked to market against end of day price as normal, and remain open at LCH.
  • Overnight initial and variation margin calls will be run as normal.
  • On Friday 17th November, the LCH Freight clearing service will open at 07:00 hrs for the registration and clearing of November and December 2017 freight contracts only. Normal service hours will then operate until final service closure on 22nd December 2017.

If you have any questions please do not hesitate to contact Isabella Kurek-Smith at , or commodity operations at