Everything you need to know about clearing your trades at EquityClear SA
EquityClear SA offers its members the ability to clear equities and derivatives from a number of different exchanges and execution venues.
Despite the inevitable variation that exists in transaction processes and procedures at each of our trading platform partners, LCH SA has developed a single harmonious trade workflow to seamlessly guide our members’ trades into EquityClear SA and through to settlement in the most efficient manner possible.
In order to value the Margins, EquityClear SA and CommodityClear SA use the prices provided by relevant Regulated Markets or Trading & Matching Platforms as mentioned in Instruction I.3.4 and data providers.
Clearing Cash Equities - Trade Workflow
All transactions that are submitted to EquityClear SA are registered on a real time basis in its clearing system in the name of the Clearing Member. Upon registration novation occurs.
The cash clearing system is open for the registration of trades between 9:00am CET to 5:40pm CET. On receipt and confirmation of eligible transactions into the clearing system, trades are governed under the rules of the LCH SA Rulebook.
For transactions registered in the cash clearing system margins are required to cover the liquidation risk, and the negotiation risk. The calculations are made using VaR Expected Shortfall methodology.
Members of LCH SA are eligible to clear products subject to approval.
EquityClear SA clearing service for financial derivatives operates through the Derivatives Clearing System. Once trades are matched on the Euronext platform, registration of matched transactions presented to LCH SA occurs on a real time basis.
The Derivatives Clearing System is open for the registration of trades between 07.30 am CET and 08.00 pm CET. On receipt and confirmation of eligible transactions into the Derivatives Clearing System, trades are governed under the rules of the LCH SA Rulebook
Once the positions at the end of the trading day have been determined, LCH SA calculates the premiums, initial margin and variation margin to be paid or received by each clearer. After the exercise/assignment of products for cash settlement, an amount is to be received or paid by the Clearing Member Firm.
Members of Euronext and LCH SA are eligible to clear products subject to approval.
More information on becoming a member of LCH SA can be found here.