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.

Initial Review

Enquiries regarding Clearing Member status should be directed to LCH.Clearnet’s Membership Team who will be able to confirm whether the enquirer meets the minimum criteria for such status. Enquirers are requested to provide the following:

  • the most recent annual financial statements along with any interim statements that show the current financial position.
  • details of any implicit or explicit support available from group or external entities.

Following receipt of this information LCH.Clearnet will carry out an initial review; this review considers factors such as external market data, the country of incorporation, financial position and any support arrangements in place.

Completion of Application Documentation

Following confirmation that the enquirer meets the minimum criteria, the application process is initiated by completing the Application for Clearing Member Status form and returning it with the accompanying documentation listed.  In addition applicants are required to sign the Clearing Membership Agreement along with other documentation dependant on the market(s) applied for.

Due Diligence Visit

Cash and Derivatives markets and Fixed Income products

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.

CDSClear 

As required by Article 2.3.3.1 of the CDS 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.

Executive Risk Committee Approval

Clearing Member applications will be reviewed by LCH.Clearnet Executive Risk Committee 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

For further details of training, please refer to the Training Curriculum. Please send any queries relating to Member Training to membertraining.fr@lchclearnet.com

Default Fund Contribution

Cash and Derivatives markets and Fixed Income products

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).

CDSClear

All the Clearing Members must contribute to the CDS Default Fund. The minimum contribution is set at 10 000 000 EUR (article 4.4.1.3) and shall be payable prior to the go-live under the conditions set out in article 4.4.2.2.

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 eight weeks.

Contact Us

For further information please contact us:

Membership
Name: Brigitte Marais, Head of Membership SA
Email: membership.fr@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

CDSClear Business Development
Name: Malavika Solank, CDSClear Head of Business Development
Email: malavika.solanki@lchclearnet.com
Phone: +44 (0)20 7426 7387

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Contacts

Membership Team

Interested applicants should contact the Membership Team for an application pack.

Tel: +33(0)1 70 37 67 60

or email: membership.fr@lchclearnet.com

Business Development

Name: Philippe Scavizzi
E-mail: philippe.scavizzi@lchclearnet.com
Phone: +33 1 70 37 67 21