Fees

Non Deliverable FX fees

 

Member
Silver

Member
Bronze

Client
 Clearing

NDF Fixed Monthly Tariff

EUR 62,500

US$ 20,833

n/a

Fixed Tariff Comparison Annual Cost

EUR 750,000

US$ 250,000

n/a

EM NDF Variable Tariff Charges

 

 

 

Total Cleared Calendar Year EM Notional (US$ bn)

 Fee / Mn

 Fee / Mn

Fee / Mn

0 - 300

 Included

US$ 3.0

US$ 3.0

> 300

 Included

n/a

US$ 1.5

G10 NDF Variable Tariff Charges*

 Included

US$ 1.0*

US$ 1.0*

*G10 NDF Fee holiday until 31 December 2018

Member fees

A Member Group may choose from two fee tariffs, Bronze or Silver, covering all inter-dealer trade registration activity for a clearing member group.

Where a Member wishes to move from the Bronze Tariff to the Silver tariff, if they give notice by the 20th of the preceding month, they will move to the Silver tariff for the 1st of the following month. From that month the remaining monthly instalments of the calendar year will be payable at the Silver tariff irrespective of fee amounts already invoiced under the Bronze tariff. Members may not move from the Silver tariff to the Bronze tariff.

Compression Fees (Member & Client Clearing)

Members and Clients will be charged US$1 per US$1million of notional reduced using ForexClear Compression.

A cap of US$500 000 per annum will apply per Member group for Proprietary trading.

No cap is applicable for Clients, or Clearing Brokers clearing Client business.

Variable fee calculation

The Variable tariff fees are calculated on each trade as

1. [ Notional amount of trade ] * the Per Million (US$) Notional fee from the relevant Tier in the schedule above.

2. The Tier applicable to the trade is determined by the YTD notional cleared in the independent Client Clearing portfolio for Client Clearing, or Bronze Members portfolio for Bronze Member Groups prior to that trade clearing. Where a trade results in the YTD notional cleared falling across two fee tiers, the trade will be apportioned between each tier on a pro-rata basis.

3. ForexClear Client Clearing fees are calculated based on the total cleared notional in a calendar year for each independent Client Clearing portfolio.

Deliverable FX fees

Clearing and Settlement Fees

FX Option clearing and settlement fees, charged at member group level, cover the trade registration and processing of all eligible FX Option trades and FX Option hedges across all offered currency pairs.

For institutions that have signed an early commitment letter to join the service and are subsequently accepted as members within 3 months of the launch date, the annual clearing and settlement fees will be:  €1,275,000 to the end of the first calendar year.

For institutions joining 3 months or more after the initial launch date, the annual clearing and settlement fee will be €1,425,000.

Settlement Reduction Fees

LCH will impose a fee as part of the automated settlement reduction process, levied against members who are in breach of relevant settlement limits at end of day on SD-2.

The fee will take the form of a “per unit of notional” charge against settlement amounts in excess of relevant currency settlement limits applied in respect of the excess of member’s Settlement Position Amount over the Settlement Position Limit as per table below:

 

AUD

CHF

EUR

GBP

JPY

Bps on notional

0.15

0.3

0.15

0.25

0.2

Fee notes

All Fees are billed monthly in arrears.

Fixed Member fees are pro-rated monthly where a Member joins intra year.

A one-off on boarding fee of $70,000 will be billed one month in arrears for each new ForexClear Clearing Member, FCM Clearing Member or ForexClear Dealer or Affiliate which is a member of, or an Affiliated Firm of, a Member Group.

Members clearing both non deliverable and deliverable FX will be required to pay both non deliverable and deliverable fees. 

For a member to offer Client Clearing they must be part of a fee paying member group.

Client Clearing fees are billed to Clearing Members

A "Client Clearing Portfolio" is a separate legally identified Client Account that exists at a specific Clearing Member. A Client Clearing portfolio is unique to each Clearing Member.

A "Member Group" means a ForexClear Clearing Member or an FCM Clearing Member, its direct and indirect subsidiaries and its direct and indirect holding companies and every direct and indirect subsidiary of each such holding company, from time to time. For the purposes of this definition: (i) ‘subsidiary' means a company in which an entity holds more than 50% of the voting rights; and (ii) ‘holding company' means a company that holds more than 50% of the voting rights in another entity.

An "Affiliated Firm" in relation to a Member Group means a firm that satisfies both of the following tests:

  • A ForexClear Clearing Member or a FCM Clearing Member (or any other member of its Member Group) holds 50% or more of the voting rights in the firm; and
  • One or more ForexClear Clearing Members or FCM Clearing Members (or any other member of their Member Group) together hold more than 50% of the voting rights in the firm.

"Voting rights" means the rights conferred on shareholders in respect of their shares or, in the case of a company not having a share capital, on members, to vote at general meetings of the company on all, or substantially all, matters.

Changes in an entity's corporate ownership may lead to changes in the tariff that applies to it.

Terms used herein are as defined in the rulebook of LCH, which you can access from the Quick Links below.

EMIR Account Structures

For more information on account structures please click here