LTD Collateral Management

LCH’s state-of-the-art risk management and collateral management processes

Risk and Collateral Management at LCH

LCH adheres to high standards in risk and collateral management across all our offered asset classes.

When you clear your trades with LCH, you’ll enjoy a robust level of protection and efficiency attainable in financial markets.

Collateral Efficiency at LCH

LCH has always provided Clearing Members with state-of-the-art tools to maximise the efficiency of managing their collateral assets, and this has never been more important than with the introduction of mandatory clearing and individual client segregation.

At the same time, LCH is developing segregation and clearing models that go beyond the minimum regulatory requirements.

Innovations are developed in partnership with other market infrastructures to help promote open access and scalable solutions that our members and their clients can rely on across their business flows.

Collateral Management: What’s New

CMS Messaging Service v5: The latest version (v5) of LCH Ltd’s SWIFT MX (ISO 20022) messaging service. Providing significant straight through processing (STP) benefits to Clearing Members looking to scale their collateral management operations beyond the traditional CMS online GUI.

CustodialSeg: LCH Ltd’s highest level of customer protection, a CustodialSeg account segregates individual client positions and collateral from those of all other clients as well as  allowing clients to pledge collateral directly to the CCP, thereby minimizing the transit risk associated with moving securities to and from the CCP via the Clearing Member. It is just one of five different protection options open to LCH members and their clients.

GBP cash Extension: Extending the GBP cash window until 16.00 (London time), an extension of 1h 30mins on the previous cut-off. Made possible by the recent extension to the CHAPS day.

Collateral Management: Resources

Collateral Account segregation: This document offers an overview of the Collateral Services provided to Clearing Members of LCH Group. Its aim is to ensure that members have a good understanding of collateral processing, (which is a  requirement of the European Market Infrastructure Regulation (EMIR)), particularly concerning account segregation.

 

Click here to access the document

 


 

Collateral Services 2017 Roadmap: Discover what LCH’s collateral team is rolling out later in the year. From the launch of our CustodialSeg service on SwapClear, to CREST Straight Through Processing, you can learn what else we have in the pipeline right here.