Periodic & One Off Fees
a. Membership
£10,000 plus VAT (one-time joining fee)
b. Connectivity
In order to receive operational reports from the Clearing House, members must have appropriate direct or indirect communication links.
A global connectivity service (Group Member Access) is offered by the London Stock Exchange Group (LSEG). A minimum 2Mbps connectivity is required, resilient ports are provided for production services (Silver, Gold and Platinum tiers) and are already included in the pricing. The one-off and monthly costs to members are shown below. These costs will vary according to capacity, configuration, resiliency and location required.
Alternative leased lines connections from external suppliers may also be possible in some cases. The Clearing House will charge for implementation support of such leased lines on an individual basis.
LCH LTD Connectivity Fees
| Tier |
Bandwidth |
||||||
|---|---|---|---|---|---|---|---|
| One-off cost |
2Mbps | One-off cost |
4Mbps |
6Mbps |
8Mbps |
10Mbps |
|
| Monthly cost |
Monthly cost |
||||||
| Platinum: Four Customer Access Ports. Clients choose from at least 2 certified carriers (Accredited Connectivity Partners – ACPs) | £2454.00 |
£1768.00 |
£5198.00 |
£2368.00 |
£2461.00 |
£2564.00 |
£2859.00 |
| Gold: Three Customer Access Ports. Clients choose from at least 2 certified carriers (Accredited Connectivity Partners – ACPs) | £2148.00 |
£1698.00 |
£4505.00 |
£2264.00 |
£2310.00 |
£2438.00 |
£2692.00 |
| Silver: Two Customer Access Ports. Clients choose from at least 2 certified carriers (Accredited Connectivity Partners – ACPs) | £1098.00 |
£867.00 |
£2749.00 |
£1178.00 |
£1224.00 |
£1283.00 |
£1415.00 |
| Bronze: One Customer Access Ports | £554.00 |
£809.00 |
£1167.00 |
£1075.00 |
£1132.00 |
£1155.00 |
£1271.00 |
Please note that:
- Unless otherwise specified, all costs (£) indicated in the table above apply to CMC PoPs located in UK and Europe (exceptions may apply). For connections to any other locations, costs can be provided on request.
- Where applicable, please select LCH SA bandwidth in the service details on the LCH LTD Order Form. Total bandwidth is the sum of the LCH Ltd and LCH SA bandwidth.
- The 4Mbps connection is a minimum prerequisite bandwidth to access both LCH Ltd and LCH SA Clearing Services.
- Where applicable, please indicate bespoke bandwidth in the service details on the Group Member Access -LCH LTD Service Order Form.
- The Platinum, Gold and Silver tiers can be used for both production and test purposes.
- The Bronze tier is for third party system suppliers (i.e ISVs) who require access to test environments.
- Changes to existing configurations (move, upgrade, or downgrade of bandwidth, change of tier etc) or for non-CMC European PoP sites will be subject to specific quotations.
- Unless otherwise agreed in the Order Form all services shall be subject to a minimum 12-month term.
c. Software
Banking, RepoClear® and SwapClear® reports are delivered in Business Objects report or in text file format. Clearing Members who wish to use the Business Objects report format should purchase software licence(s) directly from the supplier as appropriate
Annual Account Structure Fees
LCH Ltd offers members a choice of Individually Segregated and Omnibus Segregated accounts.
Find out more about the choice of accounts that LCH offers.
For the purposes of all Security Deeds and Deeds of Release, Reassignment and Termination entered into by LCH Limited before authorisation under EMIR (all such deeds, the ‘Deeds'), the Authorisation Date (as defined in the Deeds) was 12 June 2014, such date being the ‘New Authorisation Date' for the purposes of the Deeds. This notification constitutes a notification for the purposes of (a) clause 7 of each Deed of Release, Reassignment and Termination that relates to a Tripartite Deed of Assignment, (b) clause 9 of each Deed of Release, Reassignment and Termination that relates to a Security Trustee Deed of Assignment, and (c) clause 9 of each Security Deed.
View a copy of the Security Deed.
Annual Account Fees
An annual fee is charged for the account types described below:
1. All Services except SwapClear and ForexClear
Denominated in £
| ISA | Net OSA | Gross OSA | IGA | INA | |
| EquityClear |
3,000 |
1,000 |
Account not offered |
3,000 |
1,000 |
| Listed Interest Rates[1] |
Account not offered |
1,000 |
3,000 |
Account not offered |
Account not offered |
| RepoClear |
3,000 |
1,000 |
Account not offered |
Account not offered |
Account not offered |
| LSE Derivative Markets | 3,000 | 1,000 | 3,000 | 3,000 | 1,000 |
[1] For Listed Interest Rates accounts only, the first OSA is charged at £0, and subsequent OSA arrangements will be charged at an annual fee of £1,000 per Net OSA and £3,000 per Gross OSA.
2. SwapClear and ForexClear Account Charges
SwapClear and ForexClear charge a semi-annual account fee for the 6 month periods beginning 1 January and 1 July. Account fees are calculated on the day immediately preceding each 6 month period, being 31 December and 30 June of each year (‘Billing Points’).
a. ISA and IGA Account Charges
Denominated in €
| 6 Month Billing Charge |
Comparison Annual Cost |
|||
| Accounts package |
Per account |
Capped cost per package |
Per account |
Capped cost per package |
| 1 – 50 |
1,750 |
50,000 |
3,500 |
100,000 |
| 51 – 100 |
1,000 |
60,000 |
2,000 |
120,000 |
| 101 – 200 |
600 |
75,000 |
1,200 |
150,000 |
| 200+ |
375 |
- |
750 |
- |
The account fee is calculated based on the number of Live Accounts of the relevant type within the SwapClear or ForexClear service on the last day of the previous period (i.e. 31 December and 30 June).
Account fees will be charged at the lower of (a) the number of accounts multiplied by the banded cost per account, and (b) the capped cost per package.
Package discounts apply in relation to each Client or Client Group (as applicable) considering all accounts opened across all Clearing Members for such Client or Client Group (as applicable). Once the account cost is calculated, it will be billed to the client’s respective Clearing Member(s). Clearing Members are responsible for pricing arrangements between themselves and their clients.
b. Gross OSA Account Charges
The first OSA Gross is charged at €0/€0, subsequent OSA Gross arrangements will be charged at €1,750 for each 6 month period (comparison annual cost €3,500).
c. Net OSA and INA Account Charges
Each Net OSA and INA is charged at €1,750 for each 6 month period (comparison annual cost €3,500).
d. Custodial Segregated Account Charges (SwapClear only)
LCH will charge a Clearing Member who has an open Custodial Segregated Account the following account fee on each Billing Point (i.e. 31 December and 30 June of each year):
- A fee of €750 per account at the first Billing Point after account opening.
- At the second Billing Point and each subsequent Billing Point, the applicable ‘6 Month Billing Charge’ fee (shown in column two in the table below) per account.
- No fee applies for the period between account opening and the first Billing Point.
| Total Annualised SwapClear Client Clearing Fees[2] prior to the relevant Billing Point |
6 Month Billing Charge |
Comparison Annual Cost |
| 0 – 50,000 |
5,000 |
10,000 |
| 50,001 – 200,000 |
2,500 |
5,000 |
| 200,001 – 1,250,000 |
1,250 |
2,500 |
| >1,250,000 | 750 | 1,500 |
[2] ‘Total Annualised SwapClear Client Clearing Fees‘ means the total SwapClear Client Clearing Fees which LCH has billed in relation to the Client or Client Group (as applicable) in the 6 month period prior to the relevant Billing Point (converted to an annualised amount).
Custodial Segregated Accounts are currently only offered by the SwapClear service.
Terms and conditions
LCH charges its Clearing Members and Clearing Members make their own pricing arrangements with their clients.
The fees do not apply to Clearing Member Proprietary Accounts.
The fees are non-refundable once paid, no refunds for partial years.
No discounts for multiple accounts, except where explicitly specified for SwapClear and ForexClear fee plans.
On the creation of a new account, the account fee becomes immediately payable, and then annually on the anniversary of the creation date thereafter, except for SwapClear and ForexClear accounts where fees are payable on a semi-annual basis.
Definitions
Terms which begin with a capital letter, but are not defined, herein have the meaning assigned in the LCH rulebook.
‘Client’ means a direct client of a Clearing Member for whom such Clearing Member maintains the relevant client account with LCH.
‘Client Group’ means all Clients who are managed as a group by the same investment or administrative manager (as determined by LCH).
‘IGA’ means an Indirect Gross Account.
‘INA’ means an Indirect Net Account.
‘ISA’ means an Individual Segregated Account.
‘Live Account’ means any relevant account a Clearing Member has been opened with LCH which could accept transactions for clearing on the calculation date.
‘OSA’ means an Omnibus Segregated Account.
“SwapClear Client Clearing Fees” mean:
- all SwapClear client clearing, compression and account fees, and SwapClear conversion and fallback fees relating to conversion of SwapClear Contracts to reference risk-free rates, that are payable by one or more Clearing Member(s) to LCH, except and excluding
- Custodial Segregated Account fees, accommodation charges for non-cash collateral, the fees specified under the heading “Messaging Services Fees” here, and fees payable in respect of services provided by the Digital Product Group of LCH, in each case, relating to the Client or Client Group (as applicable) and irrespective of account type and Clearing Member.
Annual CSD Account Fees
LCH opens accounts in its name with CSDs and holds securities collateral posted to it by Clearing Members in such accounts. LCH makes two types of CSD account segregation available to Clearing Members, in respect of such securities collateral:
- Individual CSD-Level Segregation, where each account that LCH opens with a CSD in order to provide such segregation is a “CSD ISA”; and
- Omnibus CSD-Level Segregation, where each account that LCH opens with a CSD in order to provide such segregation is a “CSD OSA”.
Securities collateral, which LCH holds at a CSD for a Clearing Member, will always be held in a CSD OSA or CSD ISA, regardless of the LCH account(s) a Clearing Member has with LCH. By default, LCH will hold a Clearing Member’s securities collateral in a CSD OSA, unless the Clearing Member has requested a CSD ISA or requested to operate a triparty transaction with the CSD and LCH.
A CSD ISA is used to hold securities collateral for a single Clearing Member. Accordingly, such securities collateral is held separately from the securities collateral of any other Clearing Member. By contrast, a CSD OSA is used to hold securities collateral for a number of Clearing Members on a collective basis.
LCH provides CSD OSAs and Triparty CSD ISAs free of charge, but will charge a Clearing Member for each Bilateral CSD ISA it requests as outlined in the table below. All charges are subject to periodic and on-going review and change by LCH.
| CSD Name | CSD OSA | Triparty CSD ISA | Bilateral CSD ISA |
|---|---|---|---|
| Euroclear Bank | € 0 | € 0 | € 2,320 |
| Euroclear UK & IE | £0 | £0 | £1,000 |
| Clearstream | € 0 | € 0 | N/A |
The fee will be charged upon opening of the account and then again on the first LCH business day of the calendar year that the account remains open.
The following disclosure notice is provided as required under Article 38(6) of CSDR setting out the levels of protection associated with the types of CSD account segregation, a description of the main legal implications associated with the accounts, information on the insolvency law applicable and the further information on the costs associated for the accounts.