Risk Management

Business Streams

PPS Concentration Activities Image

Activity	Timing (UK time)	Risk
Overnight PPS calls sent	by 08:00	Clearing member liable for fulfilment of its abligation
	09:00	Once confirmation is received, the PPS bank is required to transfer funds from LCH.Clearnet’s account to the Concentration Bank within two hours. If the PPS bank has not transferred funds to the account of LCH.Clearnet, the member is still liable to fulfil its obligation if the PPS bank defaults
Overnight PPS calls confirmed	09:15
Auto-repay payments released	09:15	LCH.Clearnet is exposed to PPS banks when funds are on its account at the PPS bank. Once Concentration Process has taken place, LCH.Clearnet are exposed to Concentration Bank
Concentration Process	09:30
Member requests for manual calls/pays received	10:00
Intraday calls sent (UK PPS)	09:00-16:00	Calls must be confirmed within one hour. Once confirmed, the PPS bank is required to transfer funds from LCH.Clearnet’s account to the Concentration Bank within two hours. If the PPS bank has not transferred funds to the account of LCH.Clearnet, the member is still liable to fulfil its obligation if the PPS bank defaults
Intraday calls sent (US PPS)	16:00-21:00	As above
Concentration Process	Following every PPS call	LCH.Clearnet is exposed to PPS banks when funds are on its account at the PPS bank. Once Concentration Process has taken place, LCH.Clearnet are exposed to Concentration Bank
Investment Activity - Cash movements	09:00-22:00	A minimum of 85% of the cash portfolio is invested on secured basis