Member Fees

The following information is supplemented by the Member Fee Notes found in the tab above. 

1. Core Clearing Fees

The Bronze, Silver, Gold and Platinum fee plans described below apply to the clearing of core interest rate contracts and do not include inflation swaps or NDIRS (unless stated otherwise).

2. Non-Deliverable Interest Rate Swaps (NDIRS)

3. Inflation Swaps

4. Onboarding Fees

There is a one-off on boarding fee of £50,000 for each new SwapClear Clearing Member or SwapClear Dealer within the same Corporate Group as an existing member.

5. Compression Fees

Per contract fee for each contract included in a LCH or ACSP compression run.

6. Portfolio Transfer Fees

A fee is payable by a SwapClear Clearing Member which receives a Portfolio Transfer. All fees relate to Portfolio Transfers in any calendar year. 

7. IBOR Fallback Fees

Unless notified otherwise by member circular, LCH will apply a monthly Fallback Fee for outstanding IBOR contracts which have a maturity date after the currency IBOR cessation date. Fallback fees will be applied for 3 months prior to the announced LCH conversion date, for outstanding positions as of the last business day of that month.

8. IBOR Conversion Fees

Unless notified otherwise by member circular, LCH will apply a conversion fee to SwapClear Clearing Member House SwapClear Contracts which are converted by the LCH conversion tool.

An annual conversion cap will apply for all SwapClear Clearing Member House accounts.

The following Member Fee Notes provide clarification of the application of the fees listed in the Member Fees section. 

Notes on Member Clearing Fees

A "Corporate Group" means a member and its Affiliates. For these purposes, an "Affiliate" includes any entity which is a subsidiary or has the same holding company as the member, as those terms are defined in s.1159 of the Companies Act 2006.

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

Terms used on this page and not defined on this page have the meaning assigned to them in the Rulebook or FCM Rulebook of LCH, as applicable (as available here).

For the purposes of the below, a ‘trade’ or 'contract' means a SwapClear Contract or FCM SwapClear Contract, as applicable. References to SwapClear Clearing Members shall include FCM Clearing Members, as applicable.

All clearing fees are payable in GBP.

1. Core Clearing Fees

Fixed Fee

• Fixed fees are payable in equal monthly instalments in arrears. 

Booking Fees

• Paid monthly in arrears. 
• Bronze Members: The booking fee is applied to each cleared contract. 
• Silver Members: The booking fee is applied to each contract cleared exceeding 20,000 contracts.

Fee Caps

Bronze Members: 

• If a Member Group's total fees incurred by that Member Group reach £1,500,000 in any calendar year then no further fees are payable for the remainder of the year unless more than 20,000 contracts are cleared. 
• If more than 20,000 contracts are cleared the Member Group will begin the next year on the Silver fee plan. 

Bronze and Silver Members: 

• If the Member Group clears more than 20,000 contracts in any calendar year and the total fees incurred in any calendar year reach £2,400,000 then no further fees are payable for the remainder of that year. The Member Group will begin the next year on the Gold fee plan.

2. Non-Deliverable Interest Rate Swaps (NDIRS) & 
3. Inflation Swaps

Plan Election for NDIRS

• A SwapClear Clearing Member is required to elect Plan A or Plan B as part of the onboarding process.
• A SwapClear Clearing Member will be automatically enrolled in their current NDIRS fee plan unless they instruct LCH otherwise by the 1st January of a given year.
• Fee plans cannot be amended or altered during a given calendar year. 

Fixed Fee

• A fixed fee for both NDIRS and inflation swaps will accrue from the first day of the month the account is opened (regardless of whether any contracts are registered in the relevant account).
• Fixed fees will be pro-rated if a Member Group opens an account during a calendar year and will be paid monthly in arrears (regardless of whether any contracts are registered in the relevant account).
• Inflation Swaps: Due in February each year and is payable by Bronze, Silver and Gold fee plan SwapClear Clearing Members (including FCM Clearing Members) that have opened an account to clear inflation swaps (regardless of whether any contracts are registered in the relevant account).

Booking Fees

• Paid monthly in arrears. 

Fee Cap for Inflation Swaps

• No further fees are due in a calendar year if a Member Group's total Inflation Swap clearing fees reaches £420,000 in that calendar year. 
• That Member Group will automatically be invoiced £420,000 the following year. 

5. Compression

• Risk replacement contracts resulting from a compression run will not attract a registration fee.
• Any ACSP provider fees are payable in addition to the LCH fees. 

6. Portfolio Transfer Fees

• For the purposes of this section a “Portfolio Transfer” means a "Permitted Transfer" as defined in the General Regulations or FCM Regulations (as applicable).

5. Compression Fees & 
6. Portfolio Transfer Fees

• Fees will be charged on a per Member Group basis.
• Fees will be collected monthly in arrears.
• The fee structure is independent of any fees Clearing Members may be charged by an ACSP for their compression services.

7. IBOR Fallback Fees

• 'IBOR' refers to the interest rate benchmarks being replaced by alternative risk-free rates.   
• FRAs will not be subject to Fallback Fees.
• Any IBOR-IBOR basis swaps that may be voluntarily split into two interest rate swaps by LCH prior to a conversion cycle will not be charged twice.
• 'SwapClear Contract' includes an 'FCM SwapClear Contract'.

8. IBOR Conversion Fees

• 'IBOR' refers to the interest rate benchmarks being replaced by alternative risk-free rates.   
• A conversion fee caps apply only to Conversion Fees.
• Any IBOR-IBOR basis swap contracts is split into two interest rate swap contracts by LCH prior to a conversion will be treated as two separate swaps contracts from the time of splitting. As such, any outstanding IBOR contracts that may have resulted from a basis swaps splitting event will be charged separately if included in a conversion cycle.

9. SwapClear Membership Policy

For information relating to member fee plan changes and discontinuing membership, please contact the LCH Sales Team (LCHSales@lseg.com).