Changes to interest compensation for EURO and USD

As announced in the July circular, LCH.Clearnet Limited is moving to a more dynamic pricing model, which will include periodic revisions, to take into account prevailing market conditions.

As a result, from 29 October 2012, LCH.Clearnet Limited will amend the rates applied for interest compensation on cash collateral deposited in EURO and USD to 

• EURO LDR will be set at EONIA minus 35 bps

• USD LDR will be set at Fed Funds Effective minus 20 bps

It should be noted that, at this stage, there are no changes to rates applied by LCH.Clearnet SA in respect of any currencies.

The calculations for the Client Deposit Rate (CDR), the rate at which LCH.Clearnet Limited pays interest on credit cash balances for SwapClear Client financial accounts, will not change at this time.

Operational impact

LCH.Clearnet Limited clearing members should verify the impact that these changes to the rate for USD and EUR will have when interfacing with LCH.Clearnet’s member reporting and banking infrastructure.

Information on group fees can be found at http://www.lchclearnet.com/fees/ltd/

Should you have any questions on this, please contact:

Alternatively, email – [email protected] or contact your relationship manager.