Fixed income Clearing Services Fees

Effective from 1 January 2014

For further information on fees, please send your request to [email protected].

The rates indicated below are expressed in euro and are subject to VAT at the applicable rate. Fee grid applies to both Bonds&Repos and €GCPlus services.

I. Clearing fees

The clearing fees as described in this section are common at Group level.

A. Minimum Activity Charge (MAC)

A single Minimum Activity Charge will apply to all clearing members registered in LCH.Clearnet SA and/or LCH.Clearnet Ltd accounts for Fixed income / Repoclear operations.

Calculated on a monthly basis, the MAC is the minimum monthly amount to be paid by each clearing member. This MAC is a common one for LCH.Clearnet SA and LCH.Clearnet Ltd; members registering operations on both “segments” will be charged the MAC amount once only.

The MAC is only levied if the total amount of clearing fees (see below) is lower than the amount of the MAC. In that case, the member is charged with the difference between these two amounts as follows:

If  fees m < MACm  charge of [ (MACm) -  fees m ]

Where : 
 fees m: represents the total clearing fees levied on buy/sell and repo transactions, on both LCH.Clearnet SA and LCH.Clearnet Ltd, in the course of the month ‘m’.
MACm: represents the Minimum Activity Charge for the same month.

LCH.Clearnet SA invoices the MAC in the course of the month following that for which it is due.

For General Clearing Members, LCH.Clearnet SA invoices the MAC for their transactions or their group ones if necessary and per trading member cleared (for example : a general clearing member is required to pay each month a minimum of € 5,000 per number of trading member cleared).

B. Clearing fees

LCH.Clearnet SA charges a fee for each transaction cleared. The clearing fees are invoiced on a monthly basis.

• Buy/Sell Transactions

  A fixed fee of € 0.40 per million nominal is charged. These clearing fees are calculated as soon as the transaction is registered.

• Repo transactions

  The Repo clearing fee is composed of two distinct elements:
  

  • A fixed processing fee of €2.75 per repo trade

  • Plus an ad-valorem component (applied to the nominal value of the repo) based on the term of the trade, calculated incrementally against a tiered annualised rate:

    • The first 1-7 days: 0.00375%
    • The next 8-90 days: 0.00350%
    • The next 91+ days: 0.00200%

Clearing fees for repo transactions are calculated on the basis of duration i.e.: the number of calendar days between the commencement date and the termination date of the repo (excluding the commencement date), with an annual basis of 360 days. They are charged after the termination date falls due.

II. Clearing services

A. Recovery of settlement related costs

LCH.Clearnet SA re-charges members with settlement related costs as follows:

French debt:

• €1.65 per settlement instruction sent to Euroclear France
• Additional fee: €0.10 per settlement instruction sent to Euroclear France (Recharge of T2S project costs for ESES CSD's)¹    
• Fails will not be charged.

Italian debt:

• €2.63 per settlement instruction sent to Express II
• €5.00 per instruction shaped (slice of €5 million) and recycled in RTGS (i.e. fails) for each day the instruction is input into RTGS, charged to the seller only.

 Spanish debt:

• €1.45 per settlement instruction sent to Iberclear
• Net fails ² : a penalty of €3,000 is charged, except if the member has already been fined directly by Iberclear.

Note 2.Please refer to the related instruction for the net fail qualification

B. Recovery of Euroclear France Découpage¹ charges

Euroclear France charges a cost² per découpage event to the counterparty that failed to deliver bonds; LCH.Clearnet SA is also charged on an equivalent basis to other market participants.

LCH.Clearnet SA recovers découpage related costs incurred as a result of the failure by a member to deliver bonds on the scheduled date.

LCH.Clearnet SA applies the following rules to determine the appropriate members and amounts to be recharged:

• The distribution is per member, per date and per ISIN Code.

• All members who fail to deliver by the end of the RGV day process are recharged, if LCH.Clearnet has been charged by Euroclear France for a découpage on the same day and for the same ISIN code. This rule applies irrespective of whether a member has delivered part or none of the delivery obligation by this time.

• The amount recharged per member is the result of T divided by N where:

  • T = Total découpage fee charged to LCH.Clearnet by Euroclear France, per day, per ISIN code.

  • N = Number of members who fail to deliver to LCH.Clearnet SA by the end of the RGV day process.

Découpage charges are recovered on a monthly basis.

C. Un-matched instructions: penalties³

Clearing Members are due to send directly or through their settlement agents their settlement instructions, related to their cleared transactions, to Iberclear.

The lack of this obligation will be charged €5,000 per instruction not sent.

III. IDB services

A fixed fee of €0.15 per million nominal is charged to the IDB for each transaction received which the IDB is counterparty. These IDB fees are calculated as soon as the transactions are received.

IV. Web Fixed Income

Please refer to the Technical fee grid for the access cards fees.

Note 1. Découpage is the name given by Euroclear France to an end-of-day process used to optimise settlement efficiency by delivering against payment any bonds that remain in the seller’s account that form part of an unsettled delivery obligation. Découpage is equivalent to a partialling process.

Note 2. Currently, this charge is €230 (excluding VAT) per decoupage event.

Note 3. Only applicable to Spanish Debt.

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