Changes to settlement invoicing

Dear Member,

We are changing the way we report and allocate EquityClear settlement charges.

Currently the settlement invoice for each calendar month includes the volume of settlement instructions created in that month. As netting is on a trade date basis, the volume, as reported in EREP0016 – Settlement Cost Breakdown, is based on the trade date within each settlement instruction.

We will change the settlement invoice & EREP0016 to include the volume of settlement instructions based on the Intended Settlement Date (ISD) in that month.

 
From December onwards the invoices and EREP0016 will fully comply with the new basis of charging. However, the change means that the October and November invoices & EREP0016 do not fully align with the trade date or ISD methodologies. The anomalies are as follows:

1. The October invoice & EREP0016 will follow the current trade date method except that the settlement instructions generated on Monday 31 October will not be included. These will be included in the November invoice & EREP0016

2. The November invoice & EREP0016 will follow the new ISD method except that the settlement instructions with ISDs of Tuesday 1 and Wednesday 2 November will have been included in the October invoice & EREP0016.
 
If you require further information please contact Ian Mackenzie: Tel: 020 7426 7265 [email protected]

Yours sincerely
Wayne Eagle, Executive Director, LCH.Clearnet EquityClear