February 15, 2022

LCH Ltd EquityClear: 2022 fee changes

LCH circular number: 4196
Date February 15, 2022
To: All LCH Ltd EquityClear Members

Dear LCH Ltd EquityClear Clearing Member,

We would like to advise you of the following changes to the LCH Limited (LCH) EquityClear fees, effective 1st March 2022.

Variable Fail Charge and Rebate:

EquityClear will remove its variable fails fees and related rebates in all markets.

Clearing Fees:

Bands 3 and 4: These bands will be merged. Fees for this newly created band will be £0.011 per trade side cleared. The ADV range for this newly created Band 3 will be ≥70,000 to <350,000.

Current Band 5 (new Band 4): The minimum average daily volume (ADV) required to qualify for the band will reduce from ≥400,000 to ≥350,000.

Current Band 6 (new Band 5): The minimum average daily volume (ADV) required to qualify for the band will reduce from ≥500,000 to ≥450,000.

The new fee structure is detailed in full below. All other banding criteria will remain unchanged.

Growth and consolidation rebate:

A rebate will be paid to qualifying clearing members based on a combination of their highest clearing band as calculated in 2021, their full-year ADV in 2021 and their 6-month rolling average ADV in the twelve month period following 1st March 2022:

1. If the following criteria are met, a consolidation rebate equal to 100% of the clearing fees and OTC clearing fees paid during the 6-month rolling average calculation period (mentioned below) will be paid, subject to a cap of £600,000:

  • A member’s highest full-month ADV in 2021 was ≥250,000
  • At any point in the 12-month period following 1st March 2022 a member’s 6-month rolling average ADV represents 150% of the member’s full-year ADV for 2021

2. If the following criteria are met, a consolidation rebate equal to 100% of the clearing fees and OTC clearing fees paid during the 6-month rolling average calculation period (mentioned below) will be paid, subject to a cap of £300,000:

  • A member’s highest full-month ADV in 2021 was <250,000
  • At any point in the 12-month period following 1st March 2022 a member’s 6-month rolling average ADV increases by 300,000 trade sides vs the member’s ADV for 2021
     
    Current clearing fee structure​​​​​​​

Current

ADV

Primary Exchange

Other Trade Source

CSD

Fee (£)
Per Trade
Band 1 >0 >0 >0 >0 0.06
Band 2 ≥ 20,000 ≥ 3 ≥1 ≥1 0.02
Band 3 ≥ 125,000 ≥ 3 ≥1 ≥1 0.0175
Band 4 ≥ 250,000 ≥ 3 ≥ 3 ≥4 0.011
Band 5 ≥ 400,000 ≥ 3 ≥ 3 ≥4 0.0075
Band 6 ≥ 500,000 ≥ 3 ≥ 3 ≥4 0.005
Band 7 ≥ 750,000 ≥ 3 ≥ 3 ≥4 0.0045
Band 8 ≥ 925,000 ≥ 3 ≥ 3 ≥4 0.00325
Band 9 ≥ 1,500,000 ≥ 3 ≥ 3 ≥4 0.003125
Band 10 ≥ 2,500,000 ≥ 3 ≥ 3 ≥7 0.00275
Band 11 ≥ 2,500,000 ≥ 3 ≥ 3 ≥10 0.00225

Clearing fee structure from 1st March 2022

From 1st March 2022

ADV

Primary Exchange

Other Trade Source

CSD

Fee (£)
Per Trade
Band 1 >0 >0 >0 >0 0.06
Band 2 ≥ 20,000 ≥ 3 ≥1 ≥1 0.02
Band 3 ≥ 70,000 ≥ 3 ≥ 3 ≥4 0.011
Band 4 ≥ 350,000 ≥ 3 ≥ 3 ≥4 0.0075
Band 5 ≥ 450,000 ≥ 3 ≥ 3 ≥4 0.005
Band 6 ≥ 750,000 ≥ 3 ≥ 3 ≥4 0.0045
Band 7 ≥ 925,000 ≥ 3 ≥ 3 ≥4 0.00325
Band 8 ≥ 1,500,000 ≥ 3 ≥ 3 ≥4 0.003125
Band 9 ≥ 2,500,000 ≥ 3 ≥ 3 ≥7 0.00275
Band 10 ≥ 2,500,000 ≥ 3 ≥ 3 ≥10 0.00225


For additional information or any questions, please contact: 
securitiesclientserviceLTD@lch.com