| LCH circular number: | 4328 |
| Date: | October 23, 2024 |
| To: | All LCH ForexClear Clearing Members |
Dear ForexClear Participant,
We are writing to inform you of forthcoming changes to the ForexClear fee plans which will take effect from 1st January 2025, subject to regulatory review.
LCH ForexClear has continuously invested in its service and product offering to create a market-leading clearing service, evidenced in the dramatic growth in both NDF and Deliverable Options clearing in the last few years.
LCH ForexClear conducts periodic reviews of clearing Member and Client fee structures and their components. The fee adjustments outlined below take into consideration investment into new and in-flight initiatives, service growth, usage and inflation.
A summary table of the changes is included in Appendix A.
Fee Change Details
Effective 1st January 2025:
· Gold fee cap will increase;
· Silver NDF fee will increase;
· Bronze NDF fee cap will be removed;
· Non-EMTA NDF variable fee will align with EMTA variable fee;
· NDO fees will be introduced for Bronze and Client plans; and
· Compression fee holiday will end for Member groups, participating Members groups will be charged.
LCH ForexClear is in the final stages of confirming the introduction of charges for the clearing of Forward transactions. We plan to publish a follow up to this circular detailing the fee plan before the end of 2024.
If you have any comments or want to discuss any aspects of the changes in more detail, please contact your LCH representative or get in touch via LCHSales@lseg.com.
ForexClear is committed to supporting you as you review the changes. We thank you very much for your continued support and look forward to working with you in 2025 and beyond.
Kind regards,
ForexClear
Appendix A
Summary of Changes to Member Plans, Caps and Compression Fees
Gold Member Plan – Combined Non-Deliverable and Deliverable
| Fee | 2024 Structure | Structure Effective 1st Jan 2025 |
|---|---|---|
| Fixed | £1,250,000 | £1,250,000 |
| Variable1 | £3 / million cleared | £3 / million cleared |
| Annual Cap | £1,950,000 | £2,000,0002 |
Silver Member Plan – Non-Deliverable
| Fee | 2024 Structure | Structure Effective 1st Jan 2025 |
|---|---|---|
| Fixed | £900,000 | £950,0003 |
Bronze Member Plan – Non-Deliverable
| Fee | 2024 Structure | Structure Effective 1st Jan 2025 |
|---|---|---|
| Fixed | $350,000 | $350,000 |
| Variable | NDF: EMTA $2 / million cleared Non-EMTA $1 / million cleared |
NDF: $2 / million cleared4 |
| NDO: $4 / million cleared5 |
||
| Annual Cap | $1,250,000 | N/A6 |
Client Plan – Non-Deliverable
| Fee | 2024 Structure | Structure Effective 1st Jan 2025 |
|---|---|---|
| Variable | NDF: EMTA $2 / million cleared Non-EMTA $1 / million cleared |
NDF: $2 / million cleared7 |
| NDO: $4 / million cleared8 |
Compression
| Fee | 2024 Structure | Structure Effective 1st Jan 2025 |
|---|---|---|
| Variable | Fees waived for all participants9 | Member Groups: $1 / million notional reduced |
| Clients: Waived |
||
| Annual Cap | $500,000 | Member Groups: $125,00010 |
| Clients: N/A |
1 Options (FXO) and Non-Deliverable Options (NDOs) fees are applicable beyond the first $60bn cumulative notional cleared in each calendar year.
2 Pre-determined increase by £50,000 in 2025, per the Emerald Agreement signed by FXGC banks.
3 Increase by £50,000 in 2025 only for those Members clearing under the Silver Non-Deliverable Member Plan and which have been actively clearing for more than 6 months.
4 Alignment of Non-EMTA variable fee to EMTA variable fee.
5 Introduce separate NDO variable fee.
7 Alignment of Non-EMTA variable fee to EMTA variable fee.
8 Introduce separate NDO variable fee.
9 Compression fees have been published on the ForexClear website and waived to all Members and Clients since inception.
10 Compression fee cap for Members Groups reduced to $125,000 for 2025.