The cost of clearing with RepoClear
Effective from 1st January 2021
A minimum monthly activity charge (MAC) per RepoClear clearing member* of €8,500 is applied across all LCH Ltd and LCH SA Group activity in Bonds and Repo clearing, where the total registration fees chargeable to a member as below, are less than this minimum amount.
*Sponsored Members are subject to a separate minimum activity charge, as described below
Repo registration fee:
A processing fee of £3.10 for sterling denominated trades.
A single ad valorem rate of 0.004% for sterling denominated trades.
See calculation example below.
Cash bond trade registration fee rate:
1.25 per million cash amount + Processing Fee of £1.25 (depending on currency of trade)
Based on a trade of £100m start cash amount for a one-year term (360 days)
|360 days @ 0.004%||(360/360) x (100,000,000x0.00004)||= £4,000.00|
|£3.10 processing fee||= £3.10|
|Total registration fee of £ 4,003.10|
Settlement Related Charges relate to the overall cost that LCH incurs on behalf of RepoClear members in managing their respective settlement activity. This cost is invoiced retrospectively, on a monthly basis, based on settlement activity.
A penalty charge for a settlement credit event is also applicable where a member has insufficient funds to take delivery of securities from LCH. This is set at SONIA +100bps of the outstanding value of the fail.
|DvP settlement||£3.10 per net DvP settlement|
|Cash only settlement||£3.10 per movement|
|FOP settlement||£3.10 per settlement|
|Failed settlement||£45 per intended settlement|
|Opening instruction (TDO)||£5.90 per TDO instruction|
|Ongoing settlement||£5.90 per business day per settlement position|
|Closing instruction (TDR)||£2 per TDR instruction|
|Cash only settlement||£0.80 per cash instruction|
|Failed settlement||£3.75 per intended instruction|
|Amendment (TDA)||£1 per instruction|
Member interest accrued on the RepoClear Default Fund: EONIA minus twenty basis points (in respect of EURO Contributions) and SONIA minus ten basis points (in respect of GBP Contributions).
A charge of €2,500 per additional RD Code per month is applied.
Sponsored Member Registration and Settlement Fees
Sponsored Members are subject to the same Registration fees and Settlement charges as outlined above for RepoClear Clearing Members. Fees are charged at the Sponsored Member mnemonic level.
Usually, Agent Members will be charged a monthly Agent Fee of €5,000 per CCP in which they are active. However, until further notice the monthly Agent Fee of €5,000 per CCP will not apply.
Sponsored Member Minimum Activity Charge (MAC)
Sponsored Members will each be charged a MAC of £12,000 per annum. Fees are charged at the Sponsored Member mnemonic level.
For RepoClear Clearing Members joining after the 15th of each month, no MAC will be charged for activity in that first month.
For Sponsored Members, the MAC per Sponsored Member of £12,000 per annum will be pro-rated in the first year of membership, so that the first 9 months’ worth of MAC is not charged.
Each new RepoClear Clearing Member will be charged an onboarding fee of £20,000 which includes the LCH Ltd application fee if applicable.
Each new Sponsored Member, will be charged an onboarding fee of £5,000.
The onboarding fee is a one-time fee charged after the prospective member’s application (including all supporting documents) have been approved by the Executive Risk Committee of LCH Limited.
 The onboarding fee does not apply to agent members.
 For a new Investment Manager, the onboarding fee will not apply for any Sponsored Member of that Investment Manager, which onboards within the first 9 months after the first Sponsored Member under that manager joined.
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.