Clearing your cash equities and cash equities equivalents at EquityClear provides your portfolio with LCH’s best-in-class risk management, multilateral netting and unrivalled margin efficiencies.

Below you can find full details on fees at EquityClear Ltd.

Effective from 1 January 2019

To view previous EquityClear fees click here

All cleared volumes across all the trade sources cleared through the LCH Ltd EquityClear service are cumulative in recognition of our aim to offer the broadest venue coverage and netting efficiencies to our members. The EquityClear tariff structure supports members existing business whilst incentivising growth.

Members are encouraged to consolidate their cash equity business through the EquityClear service which offers economies of scale to members that conduct more business and across multiple trade venues.

The average daily volume (“ADV”) of the clearing member will be determined by the number of trades cleared throughout the month, then divided by the number of business days in the month.

Members are required to meet the criteria in the table below, which is based on the clearing members’ activity across RIE’s, MTF’s, other trade source,  the markets cleared (Central Securities Depositaries “CSDs”) and their average daily volume.

The simple fee structure with its easy to follow criteria allows clearing members to see the fixed fee that will be applied to each cleared trade throughout the month.

Members can reduce costs further by using the ‘family groupings’ discount facility that is available upon request.

The fee structure highlights LCH Ltd’s commitment to offer competitive fees that benefit its members. The tariff is structured to incentivise growth and reward those members that use the service.

In recognition of member’s commitment to the LCH EquityClear service, members can benefit from the new tariff whilst planning and developing their systems prior to migration.

Example: 21 working days in the month & Member ADV 561,244 with trade venue coverage:

RIE’s 3, MTF’s 3, Markets 4, ADV >550,000 & <650,000 = 0.006p per cleared trade

Calculation = 561,244 X 0.006p X 21 = Monthly fee  £70,716.74

The following trade venues are considered RIEs:

• London Stock Exchange for SETS, IOB and IET 
• Nasdaq Copengagen
• Nasdaq Stockholm
• Nasdaq Helsinki
• Oslo Bors
• SIX Swiss Exchange

The following are considered MTFs and trade sources:

• Aquis Exchange
• BATS
• BlockMatch MTF
• Chi-X
• Clearway
• Equiduct
• ICAP WCLK MTF
• Morgan Stanley MTF
• Nasdaq, for First North
• SIGMA X MTF
• Traiana
• Turquoise
• UBS MTF

From 1 October 2019, all OTC trades will be charged at 8p per cleared trade

CFD's will be charged at a flat rate of 10p per cleared trade

It should be noted that members wishing to apply for a new yet additional EquityClear membership will be charged a one off cost of £15,000.00

LCH Ltd passes through all settlement related fees to its members at cost.

For all settlement related Fees

Interoperable settlements

A charge will be applied of 15p per settlement, per CCP which we settle against per CSD. The charge does not apply to settlements in Euroclear UK and Ireland, for settlements in SIS resulting from executions on SIX Swiss Exchange with no cross venue netting or for settlements in Euroclear Bank from executions on London Stock Exchange International Order Book and/or International ETFs with no cross venue netting

Buying-in fee

£200.00 per ISIN. Plus additional cost of purchasing the securities.

Fixed penalty £20.00 per day, per net failed settlement. For settlements in Euroclear France the failed settlement fee is £25.00 per day, in Euroclear Finland the failed settlement fee is £65.00 per failed settlement per day.

For registered market makers and subsequent market making business in their registered less liquid ISIN’s £2.00 per day, per net failed settlement.

An ad valorem charge of a SONIA based rate, plus 1%, / 365, will be applied to the current sterling value of the failing net settlement, per day. Currently the applicable rate is 0.004%. The rate will be reviewed periodically and is subject to change.

Failed settlement compensation

The EquityClear service will compensate clearing members with the Ad valorem charge, where EquityClear fails to deliver securities to its clearing members in the following markets and the corresponding CSDs:

Compensation will be credited to members at a rate of 70% of the Ad valorem fee charged.

LCH will not rebate members in the following markets and the corresponding CSDs :

All credits and debits will be itemised within the existing month end report EREP0028- Fees- Fails charges.

This service will allow members to reduce the number of failed settlements

The net off service is available where the CSD does not offer technical netting. We request Clearing Members adhere to the procedures listed below:

No more than 5 ISIN requests per day, per member mnemonic

LCH will only process net off requests where the following conditions are met:

• The member has a failed sale transaction(s) that has reached ISD+3
• The member has one or more purchase transaction(s) that create a netting opportunity
• The purchase transaction(s) must have failed for at least 1 business day

Net off request forms must be obtained from and submitted to equityclear.ops.uk@lch.com by no later than 12pm London time.

LCH will make best efforts to process the net off request(s) as soon as possible on the day of receipt. However, it is possible that delays could occur due to excessive volume.

The net off fee is charged on a per security basis. For two transactions a GBP 50.00 charge will be applied, a further GBP 10.00 will be charged for each additional transaction requested to net off. Please see below example:

Net off 1

ISIN ABC RVP 10  

ISIN ABC DVP 10

Charge = GBP 50.00

Net off 2

ISIN DEF RVP 20  

ISIN DEF RVP 10

ISIN DEF DVP 10

ISIN DEF DVP 20

Charge = GBP 70.00

Split Fee Request

Where a clearing member requests LCH Ltd to cancel a delivery versus payment or a free of payment settlement instruction and instruct new settlement instructions in their place, a charge of £25.00 will be levied for each split request.

Clients can choose to receive ‘real time’ trade confirmation messages (RTCs).
Set-up costs and messaging costs will be charged on a case by case basis depending on the messaging option chosen and the client’s existing connectivity.

If a clearing member or its clients requires a new segregated account for collateral management purposes the following annual charges will apply:

Booking test environment £1,600 plus VAT.

Per day or part day testing cost £800 plus VAT.

Will be charged hourly at a rate of £120.00 plus VAT and be subject to a minimum charge of £240.00 plus VAT.  Examples of when ancillary fees will be charged include but are not limited to the regeneration of historic reports or the production of ad-hoc reports.

ADV: refers to Member’s Average Daily Volume
CCP Service fee: refers to Central Counterparty services offered by EUI
EUI: refers to Euroclear UK & Ireland
LSE: refers to London Stock Exchange
NCM: refers to different legal entity relationship with GCM

Should you have any questions regarding the EquityClear fee structure please contact:

Ian Mackenzie

Relationship Management

Tel, +44 (0)20 7426 7265

ian.mackenzie@lch.com