Business Streams
Membership - SA
Clearing Members of LCH.Clearnet S.A. (LCH.Clearnet) are major financial groups (including almost all of the major investment banks), broker-dealers, and specialist commodity houses. To be eligible for membership at LCH.Clearnet, firms must meet certain minimum net capital requirements depending on the products to be cleared. LCH.Clearnet Clearing Members are of a high credit quality and have large financial resources.
Please use the headings below to obtain further information regarding the minimum acceptance criteria and application process for Clearing Members.
Criteria
All applicants for Clearing Member status must sign binding legal agreements with LCH.Clearnet.
LCH.Clearnet selects its members on the basis of stringent Legal & Regulatory Requirements and the basis of Market Capital Requirements criteria in order to guarantee market security.
Costs
There are no application fees for new members.
Completion of Application Documentation
All new applicants are required to complete and sign the Application File and provide all the requested documents.
- Applicant prepares the Application Membership file, the Access Agreement and signs the Admission Agreement after approval.
Please note that additional documents requested in the Approval Letter have to be submitted prior to the go-live.
Due Diligence Visit
As required by Title II, Chapter 4, Section 2.4.2 of the rulebook and the Title IV, Chapter 1, Section 4, Article 541-18 of the General Regulation of the AMF, there could be a due diligence visit at the applicant’s offices once the Clearing Member has started its activity.
Risk Management Meeting
Clearing Member applications will be reviewed by LCH.Clearnet's Risk Management Meeting within 1 month following the reception of a complete and signed application file.
Implementation (Connectivity/Testing)
Connectivity and testing requirements will vary by market. Further information can be obtained from the Business Development Department.
Training
Please refer to the Training Program.
Default Fund Contribution
All the Clearing Members must contribute to the Default Fund. The amount payable varies with respect to different factors, as detailed in Title IV, Chapter 3, Article 4.3.1.2 of the rulebook: “The amount to be contributed by a Clearing Member to the relevant Default Fund shall be correlated with the risk associated with the Open Positions (uncovered risk)”
The total amount that may initially be called shall at least cover the price risk run by the Clearing Member in respect of its largest uncovered risk. For details please refer to the Title IV, Chapter 3 of the Clearing Rules and to the specifications made in the respective Instructions (Risk Management – The instructions - Chapter 3 – Default Fund, IV.3-1 and IV.3-2).
Go-Live
Successful applicants will agree a go-live date with LCH.Clearnet, by which time all requirements will have been met.
Timescales
Once a full and complete application pack has been received at LCH.Clearnet, the approval process will take approximately four weeks.
Contact Us
For further information please contact us:
Membership
Name: Julien Dauchy, Head of Membership Department
Email: lchclearnetsa_membership@lchclearnet.com
Phone: +33 (0) 1 70 37 67 60
Fax: +33 (0) 1 70 37 65 12
Business Development
Name: Philippe Scavizzi, Head of Business Development
Email: Philippe.Scavizzi@lchclearnet.com
Phone: +33 (0) 1 70 37 67 21
Contacts
Membership Department
E-mail: lchclearnetsa_membership@lchclearnet.com
Phone: +33 (0) 1 70 37 67 60
Fax: +33 (0) 1 70 37 65 12
Business Development
Name: Philippe Scavizzi
E-mail: philippe.scavizzi@lchclearnet.com
Phone: +33 1 70 37 67 21
Completion of Application Documentation
Enquiries
If you are interested in becoming a member, please complete the Enquiry Form
