Interest on collateral is based on daily collateral balances placed by members at LCH. Invoices are raised monthly and settlement occurs via Target 2 three business days after the month end. If there is a currency bank holiday, settlement takes place on the next available business day.
The rates indicated below are expressed in euros and are subject to VAT at the applicable rate.
Cash Collateral – Current Spreads
[1] Total rate is benchmark index minus spread.
[2] ‘All markets’ encompass CDSClear (House activity only) and RepoClear (House & Clients activities).
[3] ‘Default fund’ contribution in EUR cash only.
LCH SA will continually review this against market conditions.
Securities - Current Spreads
Securities Collateral Fee / Spread (bps) - All Markets[4]
[4] ‘All markets’ encompass CDSClear (House activity only) and RepoClear (House & Clients activities).
Central Bank Guarantee
The fee LCH SA charges on the outstanding amount of Collateral constituted by way of Central Bank Guarantee will be calculated on a daily basis at the rate of 25bps per annum.
Collateral Management
LCH SA charges a fee for each movement of collateral securities depending on the type of securities and the depository:
Equities:
- Deposited in EUROCLEAR France, Interbolsa 15 euros
- Deposited in EUROCLEAR Bank, Clearstream Banking Luxembourg 25 euros
Bonds:
- Deposited in EUROCLEAR France, EUROCLEAR Netherlands, NBB, Interbolsa 10 euros
- Deposited in EUROCLEAR Bank, Clearstream Banking Luxembourg 20 euros
Single Pledgor Pledged Account
All fees linked to the opening and the use of a Single Pledgor Pledged Account, are re-charged by LCH SA to the Member benefiting from such account
Paying Agent Report
An added-value service for the paying agent has been created; two reports are available:
- First report
Net payment position document; this consolidated report provides, for a given paying agent:- The entire list of its clients’ payments,
- The payment limits (for each client),
- The eventual excess amount paid over the limit.
- Second report
Cash document of exceeded payment limits; this specific report focuses, for a given paying agent, on all clients that exceed their payment limit. The subscription to this service is charged €530 per year for both reports (it is not possible to subscribe to only one report).
For further information on this service, please send your request to treasury.ops.fr@lch.com