How It Works

Clearing operates through a stand alone system, ECS a browser-based system with connection via existing Member leased lines or through a Virtual Private Network (VPN).

All transactions eligible for clearing are entered into ECS by approved Brokers or, in the case of directly negotiated trades, by the selling participants’ Clearing Member. ECS is open for the registration of trades between 07:30 hrs and 18:00 hrs London time. The system is open until 18:30hrs for confirmation of trades by Clearing Members.

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

Daily and final settlement of emissions contracts is based on prices provided by LEBA (London Energy Brokers’ Association). These prices are based on assessments received from LEBA members.

On expiry all net positions are physically delivered.

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