Preparing for the Launch of CNH denominated Bonds as Collateral

Dear Member,

LCH Limited (“LCH”) is preparing to extend its eligible non-cash collateral to include CNH-denominated China Government Bonds (“CGB”). This is expected to go-live in Q2, subject to regulatory approval. A confirmed go live date will be communicated via a follow up member circular.

CNH CGB collateral will be accepted on a bilateral basis only (not triparty), with settlement at Euroclear Bank. Coupons will be paid in Offshore Renminbi.

To post CNH CGB bonds to LCH, Clearing Members must have a Renminbi PPS cash account to support coupon processing. Members intending to post this collateral are encouraged to begin arranging the required PPS account setup with their PPS bank.

If you have any questions, please contact collateral.product@lseg.com