How It Works

Clearing operates through ECS, a standalone browser-based system with connection via existing Member leased lines or through secure internet connection.

The front-end to ECS is called ClearWay. All transactions eligible for clearing are entered into ClearWay by approved Brokers or, in the case of directly traded deals, by the selling participants' Clearing Member. ClearWay is open for the registration of trades between 07:00 hrs and 18:00 hrs London time (17:00 hrs for options).  The system is open until 18:30 hrs (17:30 hrs for options) for confirmation of trades by Clearing Members.

Following receipt and confirmation of eligible transactions into the ECS system, trades are governed under the rules of the LCH.Clearnet Rulebook.

Coal contracts held by LCH.Clearnet are futures style and are subject to initial and variation margining.

Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility. Daily end of day prices are provided by LEBA and final settlement is based on API 2 cif ARA (Argus/McCloskey) or API 4 Richards Bay (Argus McCloskey) indices.

On expiry all net positions are cash settled.

All existing LCH.Clearnet Clearing Members are eligible to clear OTC Coal products subject to approval. More information on becoming a member can be found here.