Fees

ForexClear Clearing Members may be members of either or both of the ForexClear Deliverable Service and the ForexClear Non-Deliverable Service. ForexClear Clearing Members may choose from a variety of fee tariffs: Gold – Combined Tariff, Bronze, Silver and Zinc. Each tariff covers all house trade registration activity for a ForexClear Clearing Member Group.

ForexClear Gold Tariff – Combined Non-Deliverable and Deliverable FX Fee

Annual Tariff*

Options/ NDOs

Fee / million**

FX spot /

Forward Hedges/ Swap Hedges and NDF

Fee / million

FX Forwards and FX Swaps

Settlement Fee** / million***

Annual Fee Cap

GBP 1,250,000

GBP 2.50

n/a

0.2 EUR or USD

GBP 1,850,000

*The Annual Tariff includes unlimited clearing volumes for FX Swaps, FX Forwards and FX Spot (that (in each case) are not cleared for the purpose of hedging FX Options) until 1st January 2024.

**Options and NDOs fees are applicable beyond the first $60bn cumulative notional cleared in each calendar year.

*** Only applicable to FX Swaps and FX Forwards transactions that (in each case) are not cleared for the purpose of hedging FX Options (which hedging is undertaken either to reduce initial margin requirements or reduce settlement risk).

Non-Deliverable FX Only Fees**

Tariff

Annual

Tariff

EMTA NDF

Fee / million

Non-EMTA NDF

Fee / million

Client

n/a

US$ 2

US$ 1

Silver

GBP 825,000

n/a

n/a

Bronze

US$ 350,000*

US$ 2

US$ 1

*Non-deliverable bronze tariff is capped at US$1,250,000 per calendar year. 

**Silver, Bronze and Client tariffs are exempted from Non-Deliverable Options clearing fees until 31st December 2022.                              

Deliverable FX Only Fees

Tariff

Annual

Tariff

FX Options

Fee / million

FX spot /

Forward Hedges and Swap Hedges

Fee / million

FX Forward

Settlement Fee / million**

Annual Fee Cap

Silver

GBP 885,000

n/a

n/a

0.2 EUR or USD

 

Zinc

GBP 545,000*

GBP 2.50

n/a

0.2 EUR or USD

GBP 1,145,000

Bronze

US$ 400,000

US$ 2

US$ 2

0.2 EUR or USD

 

Note:  New Clearing Members of the ForexClear Deliverable Service will be eligible for a fee discount - please refer to ‘Fee Discounts’ 

* The Zinc Annual Tariff includes unlimited clearing volumes for FX Swaps, FX Forwards and FX Spot that (in each case) are not cleared for the purpose of hedging FX Options) until 1st January 2024.

**Only applicable to FX Swaps and FX Forwards transactions that (in each case) are not cleared for the purpose of hedging FX Option (which hedging is undertaken either to reduce initial margin requirements or reduce settlement risk).

Member Fees

Where a ForexClear Clearing Member wishes to move from a lower fee tariff to a higher fee tariff, including to the combined Non-Deliverable and Deliverable Gold Tariff, if the Member gives notice by the 20th of the preceding month, it will move to the newly elected fee tariff effective the 1st of the following month. From that month the remaining monthly instalments of the calendar year will be payable at the newly elected fee tariff irrespective of fee amounts already invoiced under the ForexClear Clearing Member’s previous fee tariff. ForexClear Clearing Members may only move to a lower fee tariff at the start of the new calendar year.

Compression Fees (Member & Client Clearing)
  • Gold, Silver, Bronze, Zinc and Client tariffs will not be charged fees for using the ForexClear Compression Service until 1st January 2023.
  • Thereafter, Members and Clients will be charged US$1 per US$1 million of notional reduced using ForexClear Compression.
  • A cap of US$500,000 per annum will apply per ForexClear Clearing Member Group for compression of Member Group trades (i.e. proprietary trades).
  • There is no cap on compression fees for clients.
Variable Fee Calculation

The Variable tariff fees are calculated on each trade as:

  • [Notional amount of trade] * the per million (US$) notional fee from the relevant tier in the schedule above.
  • ForexClear Client Clearing fees are calculated based on the total cleared notional in a calendar month for each independent Client Clearing portfolio.
Fee Discounts

 

ForexClear Non-Deliverable Service

The ForexClear Clearing Member on the Silver or Bronze tariff that clears the most non-deliverable FX volume by trade count with respect to its house (i.e. proprietary) account, including any inter-affiliate trades, will receive a monthly fee discount of £15,000.  The discount is applied to the Silver or Bronze ForexClear Clearing Member’s monthly fee bill in arrears and will end on 31st December 2022.

ForexClear Deliverable Service

When first selecting the Deliverable Silver or Bronze tariff, the first 3 months of fixed and variable fees will be waived.

Settlement Reduction Fees for the Deliverable Service

LCH will impose a fee as part of the automated settlement reduction process, levied against members who are in breach of relevant settlement limits at end of day on SD-2.

The fee will take the form of a “per unit of notional” charge against settlement amounts in excess of relevant currency settlement limits applied in respect of the excess of member’s Settlement Position Amount over the Settlement Position Limit as per table below:

 

AUD

CHF

EUR

GBP

JPY

Bps on notional

0.26

0.23

0.2

0.22

0.2

EMIR Account Structures

For more information on EMIR account structure charges please click here

Fee Notes

All fees are billed monthly in arrears.

Fixed Member fees are pro-rated monthly where a Member joins intra year.

A one-off on-boarding fee of $70,000 will be billed one month in arrears for each new ForexClear Clearing Member, FCM Clearing Member or ForexClear Dealer or Affiliate, which is a member of, or an Affiliated Firm of, a Member Group.

Members clearing both non-deliverable and deliverable FX will be required to pay both non-deliverable and deliverable fees or the combined ‘Gold’ tariff. 

For a member to offer Client Clearing they must be part of a fee-paying Member Group.

Client Clearing fees are billed to Clearing Members

A "Client Clearing Portfolio" is a separate legally identified Client Account that exists at a specific Clearing Member. A Client Clearing Portfolio is unique to each Clearing Member.

A "Member Group" means a ForexClear Clearing Member or an FCM Clearing Member, its direct and indirect subsidiaries and its direct and indirect holding companies and every direct and indirect subsidiary of each such holding company, from time to time. For the purposes of this definition: (i) ‘subsidiary' means a company in which an entity holds more than 50% of the voting rights; and (ii) ‘holding company' means a company that holds more than 50% of the voting rights in another entity.

An "Affiliated Firm" in relation to a Member Group means a firm that satisfies both of the following tests:

  • A ForexClear Clearing Member or a FCM Clearing Member (or any other member of its Member Group) holds 50% or more of the voting rights in the firm; and
  • One or more ForexClear Clearing Members or FCM Clearing Members (or any other member of their Member Group) together hold more than 50% of the voting rights in the firm.

"Voting rights" means the rights conferred on shareholders in respect of their shares or, in the case of a company not having a share capital, on members, to vote at general meetings of the company on all, or substantially all, matters.

Changes in an entity's corporate ownership may lead to changes in the tariff that applies to it.

Terms used herein are as defined in the rulebook of LCH, which you can access from the Quick Links below.