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Company Circular No:

LCH.Clearnet Limited Circular No 3394

Service Circular No:SwapClear Circular No 112
Date:9 December 2013
To:All SwapClear Clearing Members (including FCM Clearing Members)

New Workflow for SEF Trades

LCH.Clearnet  Ltd  has amended its Rulebook to provide for a new workflow in respect of the registration of transactions that are executed on swap execution facilities or designated contract markets (“execution venues”) that have been approved by LCH.Clearnet Ltd. Such amendments envisage that each SwapClear Clearing Member will co-ordinate with LCH.Clearnet Ltd to establish a list of eligible execution venues for such member. If a transaction submitted to LCH.Clearnet Ltd for clearing on behalf of a SwapClear Clearing Member is executed on an execution venue that:

(a) either has not been approved by LCH.Clearnet Ltd or is not an eligible execution venue in respect of such SwapClear Clearing Member, such transaction will be rejected by LCH.Clearnet Ltd; and

(b) has been approved by LCH.Clearnet Ltd and is an eligible execution venue in respect of such SwapClear Clearing Member, such transaction will be accepted by LCH.Clearnet Ltd on behalf of such member, and such member shall not receive a notice requesting acceptance of such transaction for registration (unlike the legacy workflow).

Notwithstanding the above, for the period up to December 22, 2013, each SwapClear Clearing Member may, in accordance with the requirements of LCH.Clearnet Ltd, designate one or more execution venues as “Selected US Trading Venues” in respect of such member. For the duration of such period, LCH.Clearnet Ltd shall continue to apply the legacy workflow to transactions executed on an execution venue that is reflected in LCH.Clearnet Ltd’s internal records as being a Selected US Trading Venue. This is solely to facilitate transition to the new workflow, and SwapClear Clearing Members are reminded of their obligations under CFTC Rules 1.73 and 23.609.

The self-certification of the Rulebook amendments can be accessed through the following link:


For queries please contact:

SwapClear SEF Onboarding| LCH.Clearnet | Tel + 1 212 513 5604

Email: swapclearATSSonboarding@lchclearnet.com

Website:  www.lchclearnet.com 

Oscar Rodriguez oscar.rodriguez@lchclearnet.com