Cash and Derivatives Clearing Systems

LCH.Clearnet SA provides its members with an international standard clearing system, benefiting from the following technical advantages :

• single access to the LCH.Clearnet SA clearing services which allows subsequent margin offsets and cost reductions,

• an open architecture offering greater opportunities for the automation of the back-office processes,

• and a modular architecture which allows ongoing adaptations

LCH.Clearnet SA is offering market participants a global solution consisting of :

• A common access to all markets served

• Harmonization of clearing principles

and is adopting international standards in order to :

• respond to the demand formulated by the financial community (particularly from global clearers working on multiple markets)

• harmonize systems on the financial markets

The Advantages of the Cash and Derivatives Clearing System  

• An open architecture providing dialog between the members' internal computer systems and the clearing houses.

• Real-time operation which enables market participants to better manage their positions and risks.

• Detailed position keeping, allowing for balancing between unit accounts in the position keepers' books and those managed by the clearing house.

The Cash and Derivatives Clearing System can be used to perform the following clearing operations :

• postings and give-ups

• position keeping by account

• management of an account base (opening, modification, closure)

• actions on position (exercise, abandonment, assignments)

• adjustments (corrections, transfers, offsets)

• calculation of margins and premiums

• calculation of initial margins (SPAN® method)