SwapClear and ForexClear EMIR Account Fee Billing Cycle Change

Report date
Summary

Circular No.

LCH Circular No 3723

Date:

18th April  2016

To:

All LCH SwapClear & ForexClear Members
Body

Dear SwapClear & ForexClear Members,

From 1st May 2016, SwapClear and ForexClear are moving to a semi-annual billing cycle for Asset Segregated and additional Client (c) accounts. Note the existing annual account cost and account volume discount remains unchanged.

Full details of the updated EMIR Fee schedule are provided in the PDF located here, and are summarised below.

A semi-annual account fee will be charged for the 6 month period beginning 1st January and 1st July, as per the below table. The fee is calculated based on the number of live accounts of the relevant type on the SwapClear or ForexClear service on the last day of the previous period i.e. 31st December and 30th June.

Note: ForexClear account structure fees under EMIR will continue to be waived until December 31, 2016.

ISA / OSA Net Account Charges

  6 Month Billing Charge   Comparison Annual Cost
Account Package Per account Capped cost per package   Per account Capped cost per package
1 - 50 €1,750 €50,000   €3,500 €100,000
51  - 100 €1,000 €60,000   €2,000 €120,000
101 - 200 €600 €75,000   €1,200 €150,000
200 +   €375 -   €750 -

Fees will be charged at the lower of the number of accounts multiplied by the banded annual cost per account or the capped cost per package.

Package discounts apply to each underlying Client (not clearing member) considering all accounts opened by the Client, across all Clearing Members per service. Once the client account cost is calculated it will be billed to the client’s respective clearing member/s.

For existing clients, accounts billed from July 2015 will be given applicable pro-rata credit for amounts already paid for billing periods 30th June 2016 and 31st December 2016. Any account anniversaries and new accounts from May 1st- June 30th 2016 will be charged the 6 monthly fee on the 1st July 2016.

Kind regards,

Membership Sales and Relationship Management.
Membershipsales@lch.com