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Originating department:Risk Management
Company Circular No:LCH.Clearnet Ltd Circular No 2896
Date:07 July 2011
To:All Members

LCH.Clearnet  to accept CAD as collateral

From Monday 11 July LCH.Clearnet Limited (LCH.Clearnet) will begin accepting Canadian Dollar (CAD) cash as collateral to cover margin requirements. This is part of our ongoing initiative to extend the list of eligible collateral, providing members with enhanced collateral management flexibility, increased liquidity and greater efficiency.

Margin calls in CAD will be processed through PPS bank accounts and will be limited to calls generated from the overnight cover process only.  CAD will not be acceptable to meet intra-day PPS calls. Acceptable cover for variation margin purposes remains unchanged being cash in the currency of the underlying exposure only.

Interest will be paid to members lodging CAD in the normal manner, monthly in arrears, based upon the London Deposit Rate (LDR).   If you would like to receive the LDRs daily via e-mail please contact [email protected] or + 44 (0)20 7426 7203

Should you wish to lodge CAD as margin cover please contact [email protected]  or +44 20 7392 8304 to ensure that your Banking system set up is appropriate to facilitate this.

For information on acceptable collateral for margin cover purposes please contact [email protected]: or  +44 (20) 7426 7485

LCH.Clearnet continues to reserve the right to use its discretion in all circumstances and, in particular, around areas of specific concentrations in margin collateral.

Barry Gethin
Senior Manager, Treasury and Liquidity Risk

+44 (0) 20 7426 7098
[email protected]