| LCH circular number: | 4390 |
| Date: | 17 August 2026 |
| To: | All LCH Ltd Members |
Dear Member,
The LCH and LCH FCM Procedures require Clearing Members to maintain PPS contingency arrangements to ensure that margin obligations can continue to be met in the event of a failure of their nominated PPS bank(s). Members must also be able to provide evidence of these arrangements upon request by LCH.
To validate these arrangements, LCH Ltd will conduct a test of Clearing Members' PPS contingency procedures between 8th- 14th September 2026.
As part of the test, each Clearing Member will be required to transfer a small-value cash payment directly to LCH using the designated contingency SSIs. Upon successful receipt, LCH will return the funds to the contingency SSI held on record for the relevant clearing membership.
Each Clearing Member will be contacted separately with further details of the testing process, including the specific test date allocated to each margin mnemonic.
Participation in this test is mandatory for all Clearing Members.
Should you have any questions, please contact the team below:
PPS Contingency Test Team
PPSContingencyTesting@lch.com
+44 (0) 207 426 7505
Ashley Miles
Ashley.Miles@lseg.com
Strategic Delivery and Liaison Lead- Collateral Operations