PPS Contingency 2023 Arrangements

Dear Member,

The LCH and LCH FCM Procedures state that Clearing Members must ensure they have PPS contingency arrangements in place to ensure that margin obligations can continue to be met in the event of a failure of their nominated PPS bank(s). Evidence of these arrangements will be required on an ongoing basis at LCH’s request.   

Accordingly, LCH Ltd will be conducting a test of Clearing Members' PPS contingency arrangements in 2023. This will be conducted in EUR, GBP and USD currencies and will take place over the week commencing 16^th October 2023.

The test will require each member to fund a small value cash amount directly to LCH's SSIs. The successful tests will be returned to the provided contingency SSI submitted from your clearing membership.

Each Clearing Member will be contacted individually with further details of the testing- including the specific testing date for each margin mnemonic.

Participation from all clearing members is mandatory.

For further information, please contact the below:

PPS Contingency Test Team
PPSContingencyTesting@lch.com
+44 (0) 207 426 7505

Ashley Miles
Ashley.miles@lseg.com
Senior Manager Collateral Operations LCH Ltd