Holding and processing collateral with LCH.Clearnet Ltd and SA under EMIR

Clearing Members are advised of the publication of the EMIR specific Collateral Service Description covering changes to the holding and processing of collateral with LCH.Clearnet Ltd and SA under EMIR.

This Service Description offers an overview of the Collateral Services provided to Clearing Members of LCH.Clearnet Ltd and LCH.Clearnet SA. Its aim is to ensure that members have a good understanding of the changes to collateral processing as a result of requirements of the European Market Infrastructure Regulations (EMIR).

This document does not detail any changes resulting from Dodd Frank regulations for Clearing Members designated as Futures Commission Merchants (FCMs).

The following changes are outlined:

• New account structure options for handling a greater degree of segregation for client assets;
• Improved processes for providing cash and non-cash collateral to cover liabilities and margin calls;
• New methods of instructing and viewing balances and movements of collateral within the Collateral Management System (CMS) for LCH.Clearnet Ltd business; and
• Changes to the way collateral balances are reported to Clearing Members.

The document is split into two sections, the first describes changes that are relevant to LCH.Clearnet Ltd business and the second those changes that impact Clearing Members of LCH.Clearnet SA.

LCH.Clearnet is committed to providing clear information on the above in order to ensure that members have a good understanding of the services provided. LCH.Clearnet therefore welcomes questions and comments on this document.

Attachment: EMIR - Collateral Service Description

Questions about LCH.Clearnet Ltd Collateral Services should be emailed to:

[email protected]