Fees

Effective from 2nd January 2023

The clearing fees as described in this section are common at Group level.

A. Minimum Activity Charge (MAC)

A single Minimum Activity Charge will apply to all clearing members registered in LCH SA and/or LCH Ltd accounts for RepoClear operations.

Calculated on a monthly basis, the MAC is the minimum monthly amount to be paid by each clearing member. This MAC is a common one for LCH SA and LCH Ltd; members registering operations on both "segments" will be charged the MAC amount once only.

The MAC is only levied if the total amount of clearing fees (see below) is lower than the amount of the MAC. In that case, the member is charged with the difference between these two amounts as follows:

If  ∑ fees m < MACm ⇒ charge of [ (MACm) - ∑ fees m ]

Where: ∑ feesm: represents the total clearing fees levied on buy/sell and repo transactions, on both LCH SA and LCH Ltd, in the course of the month ‘m'.
MACm: represents the Minimum Activity Charge for the same month.

LCH SA invoices the MAC in the course of the month following that for which it is due.

For RepoClear Clearing Members joining after the 15th of each month, there will be no MAC applied to the first month of activity.

      B. Clearing fees

LCH SA charges a fee for each transaction cleared. The clearing fees are invoiced on a monthly basis.

• Buy/Sell Transactions

The cash clearing fee is composed of two distinct elements:

• A fixed processing fee of €1.55 per cash trade, plus,
• An ad-valorem registration fee (applied to the nominal of the cash trade) of €1.75 per million start cash amount is charged.

These clearing fees are calculated as soon as the transaction is registered.

• Repo transactions

The Repo clearing fee is composed of two distinct elements:

• A tiered processing fee as determined by the table below:

Member entities will be grouped by parent organisation (as determined by LCH on the basis of the information available to it) for the purpose of these fees.

• An ad-valorem component 0.004% applied to the start cash amount of the repo.

Clearing fees for repo transactions are calculated on the basis of duration i.e.: the number of calendar days between the commencement date and the termination date of the repo (excluding the commencement date), with an annual basis of 360 days. They are charged after the termination date falls due.

Recovery of settlement related costs

LCH SA re-charges members with settlement related costs, based on the (I)CSD utilised for its settlement, as follows:

A fixed fee of € 0.15 per million nominal is charged to the IDB for each transaction received which the IDB is counterparty to. These IDB fees are calculated as soon as the transactions are received.

Sponsored Member Registration and Settlement Fees

Sponsored Members are subject to the same Registration fees and Settlement charges as outlined above for RepoClear Clearing Members. Fees are charged at the Sponsored Memnber mnemonic level.

Agent Fees

Usually, Agent Members will be charged a monthly Agent fee of €5,000 per CCP in which they are active. However and until further notice, the monthly Agent Fee of €5,000 per CCP will not apply.

Sponsored Member Minimum Activity Charge (MAC)

Sponsored Members will each be charged a MAC of €12,000 per annum. Fees are charged at the Sponsored Member mnemonic level. However and until further notice, the MAC fee will not apply.

For new clearing member

A new member on-boarding fee will be charged €20 000 to all new members. The new fee is a one-time fee charged as of reception of the application file with a subsequent approval of ERCO.

The on-boarding fee will cover both RepoClear and €GCPlus services. Thus, any SA RepoClear member which would like to extend its memberships to €GCPlus will not be charged.

For new trading venue

An on-boarding fee of €25 000 is charged  to all new trading venues. The fee is a one-time fee charged as of formal notification received by letter by LCH SA.

The on-boarding fee is charged prior to go live of the new trading venues or new member.

For new sponsored member

Each new Sponsored Member^[1] will be charged an onboarding fee of €6,000. However and until further notice, the onboarding fee will not apply.

^[1] The onboarding fee does not apply to agent members. For a new Investment Manager, the onboarding fee will not apply for any Sponsored Member of that Investment Manager, which onboards within the first 9 months after the first Sponsored Member under that manager joined.

On all Securities for each clearing day, from intended settlement date and until effective settlement, Members will be charged €45 per failed securities delivery instruction.

For further information on fees, please send your request to Billing_Services@lch.com.