USD Holiday Prefunding Notification

Report date

Circular No.

LCH Circular No 3828


12th January 2017


All LCH Ltd SwapClear Members


As per Circular 3768, LCH would like to remind FCM Clearing Members of the changes to the PPS arrangements in effect on USD Holidays.

As the 16th of January is a USD holiday, LCH will therefore not issue any calls or pays in USD on this day. All USD margin requirements will be called in GBP.

On USD holidays LCH may not accept cash Collateral in excess of a Clearing Member's Margin requirement.

LCH will accept FCM Member prefunding in USD cash collateral into the “C” account on Friday January 13th.

Advantages of prefunding prior to a USD holiday:

  1. Funds are utilized to cover EOD increase in liabilities called on Monday January 16th as a result of any USD VM losses
  2. Covers intraday increases in liabilities without becoming LSV
  3. Minimizes the amount of Unallocated Excess created
  4. Provided buffer for trade registration on the USD holiday

Please refer back to the Changes to the Protected Payments System (PPS) document detailed within Circular 3768 for full details of how this impacts Clearing Members.

For further information please contact:

Collateral Operations

Collateral Client Services

Membership Sales and Relationship Management