Update to concentration limits for Singaporean Securities

Report date
Summary

Circular No.

LCH Circular No 4243

Date:

2 December 2022

To:

All LCH Ltd Members

Body

LCH Limited (“LCH”) has undertaken a review of the Singaporean securities concentration limits, in respect of its securities collateral.

The following revised concentration limits apply to each Clearing Member:

Singaporean legal entity limit -

  • the lower of (i) 75% of the value of the initial margin requirement (an increase from 50% of the value of the initial margin requirement) and (ii) SGD 500 million.

The following additional concentration limits continue to apply at a group level across all Clearing Members within the same group:  

Singaporean Group level limit -

  • 500m SGD in total.

These changes will be effective from December 5th,  2022 and is available for members on both bilateral and triparty basis.

LCH continues to reserve the right to use its discretion in all circumstances and, in particular, around areas of specific concentration in securities received as margin collateral.

Clearing Members seeking further information in relation to this circular should contact the following : 

collateral.clientservices@lch.com

FLRSolutions@lseg.com