Everything you need to know about clearing at €GCPlus

Trade Workflow

The repo market currently operates through direct, voice broker transactions or screen trading. All types of trade sources are accepted by LCH SA for €GCPlus.

Direct or broker trades are fed into an independent matching system, called ETCMS. Once the trade has been matched and validated to check it is within the RepoClear parameters, it is registered and LCH SA assumes the counterparty risk.

ATS (Automated Trading System) trades are registered with RepoClear when they are 'agreed on the screen'. The trade details are sent automatically to LCH SA, supporting STP. Both repo and cash bond trades transacted on ATSs are registered by the Clearing House on a novation basis as soon as the terms of the trade have been checked by LCH SA, thereby facilitating trade anonymity.

On receipt and confirmation of eligible transactions, trades are governed under the rules of LCH Rulebook.


To guarantee the net positions of Clearing Members and be able to manage its default risk, LCH SA requires its members to deposit initial margin and additional margin to cover specific risks.

This overall margin is updated during the day for allocation changes. It can be deposited in the form of eligible cash or securities

Allocations and settlement on a net basis

Intraday (cut off at 14:30 CET on trading platforms for same day) and at the end of the day (cut off at 17:00 CET on trading platforms for settlement value the day after), LCH SA calculates the net balances (Net Position Exposures) per Clearing Member and basket.

LCH SA then gives the necessary collateral management instructions to the Euroclear CMS which further on applies the required delivery versus payment (DVP) in the specified CSD. The net balance takes into account all the trades of a member regardless of the trading system used.

Reuse and pledge

€GCPlus offers full reuse to Clearing Members within the Euroclear CMS environment and access to refinancing at the Banque de France beside tri-party reuse, refinancing to Banque de France.

Member reporting

Member reporting provides Clearing Members with real-time access to their LCH Ltd reports. Clearing Members also have available the Euroclear CMS restitutions in relation with allocations and settlements.

Market data

The €GCplus service uses information from two set of market data.

The valuation of the collateral allocated to net positions in the baskets is done by Euroclear and hence uses Euroclear reference prices.

LCH SA also uses prices provided by Interactive Data which merges prices from several market places/contributors. These prices are used to build historical series which determines the asset class margin parameters.

Clearing Members also have available to them the Euroclear CMS restitutions in relation with allocations and settlements.