Transactions are negotiated between the LCH.Clearnet SA members through recognised trading platforms or trade confirmation systems.
Trades are sent to LCH.Clearnet SA for clearing.
Trade providers send the transaction details to LCH.Clearnet SA on a live-flow basis.
Transactions are deemed to be registered as soon as the terms of trades (product, counterparties) have been checked by LCH.Clearnet SA. At this moment, novation occurs and the trade is guaranteed by LCH.Clearnet SA.
A confirmation of novation is sent to the clearing members on a live-flow basis via the LCH.Clearnet SA web-site. In case of rejection, a specific message is provided.
As soon as a SRD (French debt exclusively) is registered, LCH.Clearnet SA sends an instruction concerning the start leg (value current day) in order to settle it in Euroclear France on a gross basis.
Trades received before the cut-off on D enter into the margins calculation to be called on D+1 in the morning.
To guarantee the net positions of members and be able to manage its default risk, LCH.Clearnet SA requires its members to deposit initial margin and through marking-to-market daily variation margin. These variation initial margin amounts constitute the overall margin deposited by participants with LCH.Clearnet SA. This overall margin is calculated daily for cash and repos. It can be deposited in the form of cash (EUR) or securities (OATs, French Treasuries -Bons du Trésor- BUNDs, BTP etc...).
At the end of the day (on D), LCH.Clearnet SA calculates the net balances of securities and cash for each LCH.Clearnet SA member, for settlement on D+1. LCH.Clearnet SA then gives the necessary net instructions for delivery versus payment (DVP) in the specified CSD. The net balance takes into account all the trades of a member regardless of the trading system used.
The web reporting provides to the clearing members a real-time access to their LCH.Clearnet SA Reports. Thus, the clearing members have the ability to control the correct registration of their trades into LCH.Clearnet SA on a real-time and remote basis via the web.
In addition, a complete report of activity (position, marging, delivery, fails) is available for each member at 8:00 AM (deadline).
- Fixed Income Default Fund Phase 2: Ballot Result Announcement
We are now very pleased to announce that the ballot has been successful with 81%* of RepoClear Clearing Members voting and 98%* of those who did, voting in favour.
- Fixed Income Default Fund Phase 2 Ballot process commencement
Following a ballot of Members in July 2012, LCH.Clearnet Limited ("LCH.Clearnet") introduced a segregated RepoClear Default Fund as an initial step towards limiting the level of contagion to other LCH.Clearnet services in the case of an "in extremis" RepoClear Default.
- Operating Reporting Enhancement: New Settlement Shaping Reporting
Monte Titoli's launch of Release 3 of X-TRM on the 3 December 2012 will introduce a new settlement shape size of €5 million for the opening leg of same-day repo trades in Italy. This will standardise the shaping of all Italian settlement instructions into €5 million shapes.
- Margin report enhancement
The BRFS report shows the margin call figures and gives the breakdown of the Bonds and Repos margin call requirement included in the SFEU file (financial statement).
22 June - Bonds and Repos