Changes to Portfolio Transfers

The changes applicable to full and partial transfers without collateral are:

• All partial and full transfers from one SwapClear US Clearing Member to another SwapClear US Clearing Member without collateral will be processed intraday once both the Receiving and the Carrying Member accept the transfer via the ClearLink API.
• Historically, for partial and full transfers without collateral, as long as a transfer request was received on T (T being the date that the transfer is submitted to the Clearing House) by 15:00 EST, requests for consent would be sent via the ClearLink API on T+1 at 05:00 EST, and accepted transfers would be processed as part of that day’s End of Day (EOD) batch. While the timing of transfer and consent requests will not change, as a result of STP, LCH.Clearnet LLC will be processing transfers intraday versus the previous EOD process.
• If both the Carrying Clearing Member and the Receiving Clearing Member would prefer to expedite transfers for processing on T, versus T+1, they must notify SwapClear Client Services via email confirmation. In this circumstance, SwapClear US Client Services will attempt to process transfers on T, and provide confirmation of a successful transfer to the relevant SwapClear US Clearing Members. Otherwise, transfers will process intraday, on T+1.
• Clearing Members have until T+2 to accept or reject a transfer.
  1. Once a request for consent message has been issued for a transfer, both the Carrying Clearing Member and the Receiving Clearing Member will have until EOD to accept or reject the transfer. If a transfer is not accepted by EOD, the transfer will be rejected and automatically resubmitted the following morning, by 04:00 EST. (Where SwapClear US Clearing Members have chosen to expedite the transfer for processing on T, both SwapClear US Clearing Members must accept by End of Day on T, or the transfer will be rejected and resubmitted the following morning by 4:00 EST. If the SwapClear US Clearing Members still have not accepted by End of Day T+1, the transfer is again resubmitted the following morning by 4:00 EST).
  2. Where a transfer has been resubmitted for acceptance (either once for the non-expedited process, or twice for the expedited), the Receiving Clearing Member must accept by 14:30EST on T+2, or the transfer will be rejected and a new transfer request will need to be submitted. Further, if the Carrying Clearing Member has not either accepted the transfer or filled out the Carrying Response form to notify the Clearing House of a valid reason for rejection by T+2 14:30 EST, the transfer will be automatically accepted.

  *Terms used herein and not defined herein shall have the meaning assigned to them in the Rulebook of FCM Rulebook of LCH.Clearnet Limited.

  *References to a Carrying Clearing Member and to a Receiving Clearing Member include a Carrying FCM Clearing Member and Receiving FCM Clearing Member (as the context requires).

For queries please contact:

SwapClear Client Services | LCH.Clearnet | Tel + 44 20 7426 7651
Email: [email protected]
Website: www.lchclearnet.com

Owen Taylor [email protected]