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. The system is open until 18:30 hrs 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.

Contracts held by LCH.Clearnet are futures style and are subject to initial and variation margining. On expiry all net positions are cash settled. Initial margin rate levels are reviewed periodically by LCH.Clearnet to reflect inherent market volatility. Final settlement for the European Hot Rolled Coil and Turkish Scrap contracts is based on prices provided by The Steel Index and for the two Chinese contracts, on prices provided by the Cleartrade China Steel Index (provided by Umetal).

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