The cost of clearing with RepoClear
Effective from 1st September 2019
A minimum monthly 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 £3.00 for Sterling denominated trades (€2.85 for Euro denominated and $3.50 for Dollar denominated trades).
A single ad valorem rate of 0.00375%
See calculation example below.
Cash bond trade registration fee rate:
1.25 per million cash amount + Processing Fee of €1.25/£1.25/$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 @ 0.00375%||(360/360) x (100,000,000x0.0000375)||= £3,750.00|
|£3.00 processing fee||= £3.00|
|Total registration fee of £ 3,753.00|
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 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 EONIA / SONIA +100bps of the outstanding value of the fail.
|DvP settlement||€7.75 per net DvP settlement|
|Cash only settlement||€7.75 per movement|
|FOP settlement||€7.75 per settlement|
|Failed settlement||€140 per intended settlement|
|DvP settlement||£3.00 per net DvP settlement|
|Cash only settlement||£3.00 per movement|
|FOP settlement||£3.00 per settlement|
|Failed settlement||£40 per intended settlement|
|DvP settlement||€2.00 per DvP settlement|
|Cash only settlement||€2.00 per movement|
|FOP settlement||€2.00 per settlement|
|Failed settlement||€40 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 Members are subject to the same Registration fees and Settlement charges as outlined above for RepoClear Clearing Members. Agent Members will be charged a monthly Agent Fee of €5,000 per CCP* in which they are active, starting January 2018. For Sponsored Members, there will be a Minimum Activity Charge per Sponsored Member of €2,500**. Fees are charged at the Sponsored Member mnemonic level.
* For Agent Members, the monthly Agent Fee of €5,000 per CCP will not apply until further notice. NB The Sponsored Clearing Product is not currently offered in LCH SA.
For RepoClear Clearing Members joining after the 15th of each month, there will be no MAC applied to the first month of activity.
**For Sponsored Members, the Minimum Activity Charge per Sponsored Member of €2,500 will not apply until further notice.
A new Member on-boarding fee will be charged €15,000** as of 1st February 2018 to all new members. The new fee is a one-time fee charged at the time LCH Ltd receive the application file with a subsequent approval of ERCO.
**For Sponsored Members and Agent Members, the on-boarding fee will not apply.
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.