Collateral Management System

Clearing Members are advised that with effect from Monday 6th May 2013, all collateral instructions must be sent to LCH.Clearnet Ltd by entering transactions into the Collateral Management System (CMS).

The CMS application will provide on-line instructions for:

• Lodging, releasing and transferring of securities.
• Lodging, increasing, decreasing and closing of Tri-party trades.
• Withdrawing and depositing cash.

The benefits of using CMS include:

• Greater transparency, both for members and LCH.Clearnet.
• Improved controls.
• Reduction of operational risk and more efficient processing.

This will replace the current paper-based process and will enable members to manage their collateral more efficiently.

Manual forms are only to be used as a contingency to the Collateral Management System being unavailable.

If you haven’t already done so, in order to be successfully on-boarded you need to complete the following documents (before the Monday 6th May 2013 go-live date):

• The Access Agreement
• An online User Account Request Form for each member of staff using the system

The Access Agreement is the overarching agreement which has to be completed, signed and returned for each legal entity prior to on-boarding Users.

The User Account Request Form contains all the details required to successfully onboard Users with the correct permissions for your business.

Once you have successfully completed and returned the Access Agreement, users will be able to register their details and obtain their login credentials via an online process.

A Reference Guide has been produced which details all the new functionality, complete with explanations for each new process. A test environment is also available should you wish to familiarise yourself with the new processes prior to go-live. A dedicated Collateral Management Team will support any testing undertaken. If you are interested in taking part in a familiarisation session in the test environment, please let us know.

The Reference Guide, related documents and further information can be accessed via:

http://www.lchclearnet.com/risk_management/ltd/benefits_of_the_collateral_management_system.asp

Further information

If you have any queries, please contact Nick McMillan by phone on 020 7426 7283 or by email at [email protected]

Siobhán White
Director, Treasury Operations