LCH Ltd EquityClear fee revision

Dear LCH Ltd EquityClear Clearing Member,
 
Please be advised of certain changes to the LCH Ltd (LCH) EquityClear Clearing Members’ fees, effective from 1st January, 2024.

• The current ETF, ETN and ETC settlement fee rebate will be expanded to include settlements in Clearstream Bank Luxembourg.
• Settlement fees in France, Belgium and the Netherlands will change from 1.50 EUR to 1.45 EUR per settlement.

In addition, LCH will introduce a fee for Interoperable OTC NIL Settlements:

Where the netting of a Member's trade sides at a Settlement Firm ID (SFID) level in a single security manifests a zero stock, zero cash netted position, resulting in zero chargeable CSD instructions in the SFID, and includes OTC trade sides where the counterparty is an interoperable co-CCP, then the cost of one relevant CSD instruction (plus any associated messaging and co-CCP fees) will be levied to account for settlements incurred by LCH Ltd vs co-CCPs.  Such instructions will be named ‘Interoperable OTC Nil Settlements’ on invoicing.

If a Member is eligible for the rebate on ETF, ETN and ETC settlements in ICSDs, then all ICSD Interoperable OTC Nil Settlements will be charged at the discounted, post-rebate rate at a SFID level.

It should be noted that members can incur more than one Interoperable OTC Nil Settlement per security per day if:

• Members maintain multiple Settlement Accounts (‘SFIDs’)
• The same security is being traded in multiple currencies

These separate Interoperable OTC Nil Settlements will be attributed to the relevant SFID in LCH Ltd invoicing.

If you have any questions relating to these changes then please contact: securitiesclientserviceLTD@lch.com

Yours Sincerely

Ivan Gilmore
Head of Cash Equities, LCH Ltd & LCH SA