SwapClear Compression Offering Pricing

As previously notified, SwapClear has introduced a multilateral extension of its compression offering called Multi compression. This new capability enables various members to compress trades with each other and is complementary to existing SwapClear and third-party compression offerings.

The new fees, which will apply across the SwapClear offering on March 3 2014, are tiered according to usage and apply regardless of which compression option is chosen:

Solo compression – unilateral
Duo compression – bilateral
Multi compression - multilateral

A summary of the tiered fee plan is set out below. For full details please refer to the LCH.Clearnet website.

Fee summary

Members may select an initial tier prior to March 21, with annual reset from January 1 each year and will be automatically upgraded when trade volume and/or fee tiers are reached. Members may not ‘elect’ to move to a different plan during a calendar year. In addition, should a member not select a plan prior to March 21, then they will automatically be moved to the basic tier fee plan outlined below.

Basic tier

• £15 per trade compressed, up to £300,000

Standard tier

• £300,000 flat fee up to 50,000 trades compressed then
• £15 per trade compressed, up to £500,000

Ultimate tier

• Flat fee of £500,000, unlimited trade compression

General terms

• Fees will be charged on a ‘per group’ basis in line with our Membership Fee Policy
• Fees are collected monthly in arrears
• In 2014, £300,000 cap for Basic Tier is pro-rated to £250,000; £500,000 cap for Standard Tier is pro-rated to £416,557
• Third-party services* compressed at £7.50 per trade under the same tier, effective September 1, 2014
• Fee structure is independent of any fees members may be charged by a third-party service provider for their compression services

Future Developments

We are continuing to develop our compression offering and are planning to roll out new compression initiatives later this year, subject to regulatory approval.

Compression services are optional. Please contact your account manager to discuss which plan might work for your institution or for further information on compression.

We would like to take this opportunity to thank all of our clearing members for their continued support and look forward to working with you in 2014.

 ^{*Known as ACSP in the LCH.Clearnet Rulebook.}

^{SwapClear Compression| LCH.Clearnet | Tel + 44 20 7426 7651
Email: [email protected]}