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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2609
 Service Circular No:EquityClear Circular No 155
Date:15 April 2010
To:All EquityClear Clearing Members

Changes to EquityClear Member Reports

Dear Member,

LCH.Clearnet Limited would like to advise its members that it will introduce a new initial margin component called offset margin.

Offset margin will be used in the future as EquityClear expands to support a wider range of product classes.

Where products are correlated but have differing close out periods, offset margin will be used to adjust margin received to allow for the different close out periods.

It is envisaged that the first use of offset margin will be for Centrally Cleared Contracts for Differences (ccCFDs) due to launch Q3, 2010.

A new report, EREP0017 Offset Margin Detail at Clearing Account Level, will show the additional margin required. The total additional offset margin will be provided as an additional value on report EREP0003 Margin Summary at Clearing Account Level. These changes will come into effect on 10 May 2010. However, the additional field and report will not be populated until the offset margin becomes applicable. Full details are available within the new version of the EquityClear Member Reports document.

Please use the following link to view the new report EREP0017 and the additional column within report EREP0003.

http://www.lchclearnet.com/cash_equities/lse/technical_documents.asp

Please use the following link to view the EquityClear margin rate spreadsheet.

http://www.lchclearnet.com/risk_management/margin_information.asp

As part of the LCH.Clearnet commitment to offer further added value we hope this additional information will benefit our clearing members.
 

Members requiring further information should contact Ian Mackenzie on 020 7426 7265 ian.mackenzie@lchclearnet.com

 

Yours sincerely

Wayne Eagle, Director, LCH.Clearnet EquityClear