The cost associated with using the EquityClear service will depend on the members monthly volumes. All cleared volumes across all the trade sources cleared through the EquityClear service are cumulative. The EquityClear tariff structure supports members existing business whilst incentivising growth.
The average daily volume ("ADV") of the clearing member will be determined by the number of trades cleared throughout the month, then divided by the number of business days in the month. When the ADV has stepped through each band, the cost of clearing and an average unit cost per trade can be derived. Please see example below.
Members can reduce costs further by using the 'family groupings' discount facility that is available upon request.
The fee structure highlights LCH.Clearnet’s commitment to reduce fees and benefit its members. The tariff is structured to incentivise growth and reward those members that use the service.
Please use our user friendly calculator that will assist members with any modeling. Upon entering a member’s volumes the calculator will highlight the associated fee.
Should you have any questions regarding the fee structure please contact:
Ian Mackenzie, Repo and Exchanges: Tel, +44 (0)20 7426 7265. firstname.lastname@example.org
3,300,000 trades / 21(Days in the Month) = 157,142 (Average Daily Volume)
10,000 trades at 10p = £1,000
10,000 trades at 7p = £700
20,000 trades at 5p = £1,000
10,000 trades at 4p = £400
25,000 trades at 1p = £250
75,000 trades at 0.5p = £375
7,142 trades at 0p = £0
Total £3,725 x 21 = £78,225
LCH.Clearnet Ltd passes through at cost, all settlement related fees to its members.
Those trade sources that choose to use the CCP services of EUI will be subject to an additional EUI CCP services fee that will be passed through at cost.
£125 per ISIN, per day, in addition to the cost of purchasing the securities.
Failed Settlement Costs
Fixed penalty £12.50 per day, per net failed settlement
For registered market makers and subsequent market making business in their registered ISIN’s £2.00 per day, per net failed settlement
An ad valorem charge of a SONIA based rate, plus 1%, / 365, will be applied to the current sterling value of the failing net settlement, per day. Currently the applicable rate is 0.004%. The rate will be reviewed periodically and is subject to change.
Where the ad valorem charge is applied, members will receive a rebate at month end. The rebate will be determined by the percentage of clearing fees paid in the month. The rebate will not exceed the amount of ad valorem charge for the month
Where a CSD does not offer technical netting services, we will provide a service to close out open deliver and receive transactions with different settlement dates.
This service will allow members to reduce the number of failed settlements.
£30.00 per adjustment
Real Time Trade Confirmations (RTCs)
Clients can choose to receive ‘real time’ trade confirmation messages (RTCs).
Set-up costs will be charged on a case by case basis depending on the messaging option chosen and the client’s existing connectivity
Booking Test environment £1,600 plus VAT.
Per day or part day Testing cost £800 plus VAT.
Will be charged hourly at a rate of £120 plus VAT and be subject to a minimum charge of £240.00 plus VAT.
EquityClear Annual fees Effective from 1 January 2013
|Membership fee||£12,500 per annum (assessed and collected in advance annually. Pro rata per month or part month)|
|Charge per NCM||£1,500 per annum (assessed and collected in advance annually. Pro rata per month or part month)|
|Change or new mnemonic||£800 per mnemonic|
Glossary of terminology used above
ADV: refers to Members Average Daily Volume
CCP Service fee: refers to Central Counterparty services offered by EUI
EUI: refers to Euroclear UK & Ireland
LSE: refers to London Stock Exchange
NCM: refers to different legal entity relationship with GCM