SA Acceptable Cash

LCH SA accepts the following currencies to cover margin requirements:

  • Euro*:Clearing Member must deposit via an account held within a central bank connected to the TARGET 2 system or be represented by a payment agent holding such an account.

The cash and collateral payments in TARGET2 occurs daily in accordance with the following time slots:

INITIAL MARGIN CALL

MARKETS

TG2 TRANSFER

CONTROL

SETTLEMENT

SCOPE

CASH EURO

CASH EQUITIES

8:00 AM CET CET

8:00-8:30 AM CET CET

8:30-9:00 AM CET CET

Re-evaluation of positions, prices and collateral
Excess cash return when appropriate

Cash call only for CDS market

DERIVATIVES

COMMODITIES

REPOCLEAR

CDSCLEAR

€GC+

CASH EURO

CDSCLEAR

9:30 AM CET CET

9:30-9:30 AM CET

9:40-9:45 AM CET

Cash excess return for CDS market

 

 

 

 

 

 

FIRST INTRADAY MARGIN CALL

MARKETS

TG2 TRANSFER

CONTROL

SETTLEMENT

SCOPE

CASH EURO

CASH EQUITIES

11:30 AM CET

11:30-11:55 AM CET

11:55-12:00 AM CET

Re-evaluation of positions and prices
No Cash excess return

DERIVATIVES

CDSCLEAR

         

 

ADDITIONAL MARGIN CALL

MARKETS

TG2 TRANSFER

CONTROL

SETTLEMENT

SCOPE

CASH EURO

CASH EQUITIES

12:30 PM CET

12:30-12:55 PM CET

12:55-1:00 PM CET

Recalculation of cover distribution after new deposits
Excess cash return

DERIVATIVES

COMMODITIES

REPOCLEAR

CDSCLEAR

€GC+

           

SECOND INTRADAY MARGIN CALL

MARKETS

TG2 TRANSFER

CONTROL

SETTLEMENT

SCOPE

CASH EURO

CASH EQUITIES

2:30 PM CET

2:30-2:55 PM CET

2:55-3:00 PM CET

Re-evaluation of positions, prices and collateral
No Cash excess return

DERIVATIVES

COMMODITIES

REPOCLEAR

         

 

THIRD INTRADAY MARGIN CALL

MARKETS

TG2 TRANSFER

CONTROL

SETTLEMENT

SCOPE

CASH EURO

CASH EQUITIES

3:30 PM CET

3:30-3:55 PM CET

3:55-4:00 PM CET

Re-evaluation of positions and prices
No Cash excess return

DERIVATIVES

CDSCLEAR

€GC+

 

* At CDSClear, Euro cash deposited after the first intraday slot will be subject to a €50 million daily cap per CDS Clearing Member. Any change on the cap amount will be communicated in advance.

 

  • US Dollar or Pound Sterling:deposited via an account in the name of LCH within the commercial bank Euroclear Bank.

     

    US Dollar cash collateral is subject to a 4.8% haircut.

    Pound Sterling cash collateral is subject to a 5.4% haircut.
     

Cash payments in non-euro currencies

On Derivatives and CDS markets, under specific circumstances, a clearing member has also to satisfy its Cash payment obligations in the non-euro contractual currencies. Following table gives the overview of PPS banks and time slots, used by LCH SA specifically for non-euro cash payments margin calls:

MARKETS

PPS

CURRENCIES

CONTROL

SETTLEMENT

 

 

DERIVATIVES

 

KAS BANK

GBP

8:00 AM CET

9:00 AM CET

Non-euro currencies call and pay

USD

CHF

NOK

SEK

DKK

CDS CLEAR

BNY

USD

8:00 AM CET

9:00 AM CET

USD Cash calls only

9:00 AM CET

9:45 AM CET

USD Cash pays only