| LCH circular number: | 4081 |
| Date: | March 13, 2020 |
| To: | All LCH Ltd Clearing Members |
Clearing Members are advised that LCH Ltd (LCH) will have service specific operating hours for Good Friday (10th April 2020) and Easter Monday (13th April 2020). Please refer to the Service Opening Table for additional details.
Margin Calls
Margin calls from close of business on Thursday 9th April:
ForexClear – Margin calls will be processed and called from Clearing Members’ PPS bank for value on Friday 10th April 2020.1
All other Clearing Services – Margin calls will be processed and called from your PPS bank for value on Monday 13th April 2020.1
ForexClear will be open for business as usual on Good Friday 10th April 2020 and Easter Monday 13th April 2020 and will be subject to the normal business day processes, including intraday margin calls and deadlines as detailed in the LCH Rulebook.
Margin Management
LCH requests that any USD cash collateral or securities lodgements in excess of a Clearing Member’s Initial Margin requirement are advised prior to 10:00 New York time (15:00 London time) on Thursday 09th April 2020. Any lodgements after this time, up until the start of day on Monday 13th April 2020 will be managed on a case by case basis. Clearing Members may continue to provide cash collateral in response to a margin call or lodge non-cash collateral in accordance with standard processes. The Collateral Management System (CMS) cash deposit limits will reflect the above.
On 09th of April 2020 and 13th April 2020, LCH will only accept securities to fund any Backloading or Portfolio Transfer activity which has a liability greater that GBP 50,000,000.
SwapClear and EquityClear will be open for business as usual on Monday 13th April 2020 and will be subject to the normal business day processes, including intra-day margin calls and deadlines as detailed in the LCH Rulebook.
Between Monday 06th April and Monday 13th April 2020, LCH may require more than 2 days’ notice for substitution of collateral (cash versus non-cash collateral and vice versa as well as cash versus cash) for any currency.
The above applies to both Clearing Member’s Proprietary and Client business.
Reporting
Banking reports from close of business on Thursday 9th April 2020:
ForexClear
Banking reports will be available to Clearing Members on Friday 10th April 2020 from 07:00 (London time). Clearing Members are advised that reports will be available on the LCH Portal website dated 10th April 2020.
All other Clearing Services
For technical reasons, Banking reports will still be produced on Friday 10th April 2020; however these will not be complete with regard to business data and should be ignored. Complete Banking reports will be available to Clearing Members on Saturday 11th April 2020 from 07:00 (London time) via the LCH Portal in the dated folder 13th April 2020.
Banking reports are available on the LCH Portal for one month.
For further information:
Collateral.ClientServices@lch.com
Nick McMillan
nick.mcmillan@lch.com
UK Head of Collateral Operations and Client Services
Elissa Holme
elissa.holme@lch.com
Head of CaLM LCH Limited
N.B. Please note that the content of this Circular is subject to regulatory review.
1 Except for those currencies where holidays apply and day 2 currencies.
Terms used in this circular and not defined in this circular shall have the meaning assigned in the LCH Rulebook (available at https://www.lseg.com/en/post-trade).