How It Works

LCH.Clearnet Ltd

Clearing operates through the EquityClear Clearing Platform (ECP). Registration of matched transactions presented to LCH.Clearnet occurs intraday on a real time basis.

The EquityClear Clearing Platform is open for the registration of trades between 7.00 hrs and 17.15 hrs London time.

On receipt and confirmation of eligible transactions into the EquityClear Clearing Platform, trades are governed under the rules of the LCH.Clearnet Ltd rulebook.

Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility. For Equities with adequate historic time series the most recent 252 closing prices are used to determine the price volatility. If there is insufficient price history then a flat rate is applied. These rates are usually aligned with the sector volatility and are updated on a quarterly basis.

Members of EquityClear are eligible to clear products subject to approval.  More information on becoming a member can be found here.

LCH.Clearnet SA

All transactions that are submitted to LCH.Clearnet SA are registered on a real time basis in its Clearing System in the name of the clearing member. Upon registration novation occurs.

The Cash Clearing System is open for the registration of trades between 9:00am CET to 5:40 pm CET. On receipt and confirmation of eligible transactions into the Clearing system, trades are governed under the rules of the LCH.Clearnet SA rulebook.

For transactions registered in the Cash Clearing System margins are required to cover the liquidation risk, and the negotiation risk. The calculations are made using SPAN ®.

More information on Equiduct Service offer can be found here

Members of LCH.Clearnet are eligible to clear products subject to approval. More information on becoming a member can be found here.