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| Company Circular No: | LCH.Clearnet Ltd Circular No 3068 |
| Date: | 24 January 2012 |
| To: | All Members |
Preferential Currencies
Introduction
LCH.Clearnet Ltd (LCH.Clearnet) is making important changes to the intraday margin call process. The following provides details of the changes and requests that clearing members nominate a preferred currency to cover their intraday margin calls.
Preferential Currency
Currently LCH.Clearnet contacts Clearing Members requesting the currency that they would like to use to cover their intraday margin calls. This is performed prior to each intraday margin call and can significantly slow down the collection process.
LCH.Clearnet is changing this procedure to allow margin calls to be made using straight though processing. We kindly ask you to nominate a preferential currency to cover your intraday margin calls. The information provided will be stored and set as the default currency.
Currency preferences can be nominated at a mnemonic and sub account level (e.g. house/client), and will be used for intraday margin calls relating to all Services associated with the specified mnemonic and sub account.
Only GBP, EUR or USD may be nominated for the purpose of intraday margin calls up until 14:30hrs London time. Calls after this time will be made in USD. Clearing Members may request to change the currency that is used for intraday margin calls from time to time provided the request is made by no later than 09.30hrs in order for the change to be effective for the following business day.
Timescales
- Nominated currencies to be submitted by Friday 24 February 2012.
- Nominations must be submitted by completing the Preferential Currency For Intraday Margin Calls Form.
- Preferential Currencies will be set to GBP1 if nominations are not received by LCH.Clearnet by Friday 24 February 2012.
- The new procedure will be implemented from Monday 5 March 2012.
- This process will not impact preferences for overnight calls or pays that have previously been nominated.
Further information
If you have any queries, please contact the Treasury Operations department by phone on 020 7426 7505 or by email at [email protected].
Siobhán White
Director, Treasury Operations
1 For SwapClear Futures Commission Merchants (FCM’s) the default currency will be set to US dollars.