Revision to ForexClear Fee Tariffs, Effective 1st January 2017

Report date
Summary

Circular No.

LCH Circular No 3802

Sevice Circular No.

ForexClear Circular No 3

Date:

1st November 2016

To:

All LCH Ltd Clearing Members
Body

Dear Members,

This notice is intended to offer forward guidance to ForexClear Members of an upcoming change to the ForexClear Fee Tariffs, which will become effective on 1st January 2017.

Full details of the ForexClear Fees, including current tariffs and details on the revised fee tariffs can be found on the LCH website here. We also include a short summary of the changes below:

Summary of revision to ForexClear Fee Tariffs:

Members:

As of 1st January 2017 Members may choose from two fee tariffs covering all inter-dealer trade registration activity for a clearing member group:

The Silver Member (Fixed) Tariff

  1. The Silver tariff is charged an annual fixed clearing fee of €750,000, charged by the Clearing House to cover all inter-dealer trading activity for a clearing member and members of its Member Group.
  2. Fees are billed monthly in arrears in installments of €62,500, and pro-rated monthly where a Member joins intra year.

The Bronze Member (Variable) Tariff

  1. The Bronze tariff is charged an annual fixed clearing fee of $150,000. Fees are billed monthly in arrears in 12 installments of $12,500 and pro-rated monthly where a Member joins intra year.
  2. A Bronze Tariff Member will incur Member volume fees charges in accordance with volume registered per the ‘Member Volume Fees’ in the fee schedule below.  Fees are billed monthly in arrears.


Client and Bronze Member Volume Fees:

As of 1st January 2017, clearing fees under the ForexClear Client Clearing service are charged to the Clearing Member according to the ‘Client Clearing fees’ in the fee schedule below.

In addition to the annual fixed clearing fee, Bronze Members also pay Member Volume Fees according to the ‘Member Volume Fees’ in the fee schedule below.
In both cases, the appropriate Tier is determined using the Total Cleared Notional for the calendar year.

 

Fee Schedule

Per Milion (USD) Notional FeeTier  
Tier Total Cleared Notional Member Volume Fee Client Clearing Fees
1 $0 bn - $50 bn $5.00 $5.00
2  >$50 bn - $150 bn  $4.00  $4.00
3 >$150 bn - $250 bn $3.00 $3.00
4 >$ 250 bn $0 $1.50

 

Member and Client Compression Fees:

As of 1st January 2017:

  1. Members and Clients will be charged $1 per $1million of notional reduced using ForexClear Compression.
  2. A cap of $500k per annum will apply per Member group for Proprietary trading. Client clearing is excluded from the cap.
  3. No cap is applicable for Clients, or Clearing Brokers clearing Client business

Other Fees:

A one-off on boarding fee of $70,000 will be billed one month in arrears for each new ForexClear Clearing Member, FCM Clearing Member or ForexClear Dealer which is a member of, or an Affiliated Firm of, a Member Group.

Should you have any questions on the these planned revisions to the ForexClear Fee Tariffs, please contact the LCH Membership sales team – membershipsales@lch.com; + 44 (0) 20 7426 7347
 

Thank you.
 

Tel + 44 (0) 20 7426 7347
Email: membershipsales@lch.com
Website: www.lch.com