| Market: | All |
| Products: | Derivatives |
| Date: | 20 November 2006 |
Derivative Fees Invoicing Changes and Implementation Plan
This Info Flash provides an overview of the forthcoming changes to be introduced in January 2007 with regard to the improvements developed for members’ invoicing. This development is within the framework of the ongoing programme of tariff review initiated by LCH.Clearnet group in 2006.
The changes detailed below concern your Derivatives activity only, across all LCH.Clearnet SA market segments, with effect from 02 January 2007. Whilst aware of the short notice, we would like to point out that changes implemented are minor and impact mainly the distribution of a new paper-based information. In addition, the Amsterdam fee-split changes consist in filling 3 existing fields. With regards to the Amsterdam segment changes, members have been recently consulted through the Dutch Local User Committee and agreed for going live on the 02 January.
This Info Flash is intended to provide LCH.Clearnet SA participants with
A comprehensive description of the changes to be implemented by market segment
The related implementation plan
The member testing facilities and the related timetable
Changes that apply to the Brussels, Lisbon, Paris and Amsterdam (for exercise/tender and assignment fees only) market segments
With effect from 02 January 2007, the changes listed below are planned:
The treasury reports / daily cash call documents: The existing format is being modified but the content remains unchanged, apart from a new footer which is as follows:
“Document ne valant pas facture au regard de la TVA / Do not consider this document as an
invoice for VAT purposes”.A new formal detailed invoice: The purpose of this new invoice is to recap on a monthly basis the daily cash calls performed. This formal invoice will be sent via mail between the fifth and the tenth business day of the month following related activities, in tandem with a breakdown providing LCH.Clearnet SA participants with the relevant details. The first invoice is due to be sent in early February 2007.
For further information, please refer to the template attached depending on your language of choice.
For your information, please be aware that:
The current monthly invoice: The existing invoice that includes all clearing services charged by LCH.Clearnet: (i.e. Corrections, Transfers, Positions Opening….) remains unchanged.
OPEJ1 and OPEJ2: The existing format and content remain unchanged.
Changes that apply to the Amsterdam market segment only
As a consequence of the LCH.Clearnet and Euronext decision for improving the transparency of fees, the current combined transaction fee (including both trading and clearing fees) is, from the 1st January 2007, due to be unbundled into two separate fees. The implementation of this splitting out will have the following impacts:
As of the 2nd January 2007:
The OPEJ3: Existing fields that are currently not in use will be populated with new information according to the table below for each data record AFFE (posting), TRSF (transfer) and CORR (correction):
| Field | Current situation | Next situation |
| Trading fees amount | Transaction fees (both trading and
clearing fees) | Trading fees |
| Indicator of trading fees amount | P or N | P or N |
| Clearing fees amount | 0 (zero) | Clearing fees |
| Indicator of clearing fees amount | P or N | P or N |
The enclosed OPEJ3 specifications owned and provided by Euronext.Liffe reflect these changes. The format is not modified but members are kindly advised to check the potential impact on their automated internal routines.
The treasury reports / daily cash call documents: The existing format is modified as the transaction fees record will be split into trading fees and clearing fees respectively, a further level of aggregation for options and futures is also added. In addition, a new footer is created as follows:
“Document ne valant pas facture au regard de la TVA / Do not consider this document as an invoice for VAT purposes”.
As an example, please refer to the template attached.
A new formal detailed invoice: The purpose of this new invoice is to summarise on a monthly basis the daily cash calls performed. This formal invoice will be sent via mail between the fifth and the tenth business day of the month following related activities, in tandem with a breakdown providing LCH.Clearnet SA participants with the relevant details. The first invoice is due to be sent in early February 2007.
For further information, please refer to the template attached depending on your language of choice.
For your information, please be aware that:
The current monthly invoice: This existing invoice that includes all clearing services charged by LCH.Clearnet: (i.e. Corrections, Transfers, Positions Opening….) remains unchanged.
The implementation plan and the member testing
From the 12th December 2006 until the 20th of December inc.
Members will be given the opportunity to test the split of clearing and trading fees
for Amsterdam segment on an optional -testing basis.
The External User Acceptance platform (EUA) will be populated from the morning
12th December with OPEJ3 production flows in order to allow members to test the
proper file integration.
On the 14th and 15th of December 2006
Members will be given the opportunity to test the split of clearing and trading fees
along with the cash calls for all derivatives segments for non-regression purposes.
The External User Acceptance platform (EUA) will be populated on the 14th
December morning with production flows. OPEJ3 and daily cash calls will be
provided in order to allow members to reconcile flows together and check them against
production data.
On the 15th of December 2006, OPEJ3 and daily cash calls will be provided in
order to allow members to reconcile flows based on EUA data flows, as this platform is
currently shared with other projects, such as Intra Day Margin (IDM).
On the 19th and 20th of December 2006
The External User Acceptance platform (EUA) will be populated on the 19th
December and 20th December with EAU flows. OPEJ3 and daily cash calls will be
provided in order to allow members to reconcile flows together.
Member testing contacts
For any enquiry during the tests or for any further information, please be aware that
Your LCH.Clearnet Product Implementation contacts are:
Nathalie Parquic + 44 (0) 207426 7889 – nathalie.parquic@lchclearnet.com
Angelo Pinar + 33 (1) 70 37 66 85 – angelo.pinar@lchclearnet.com
Or
your local relationship manager.
Your Euronext.liffe product implementation contact for OPJE3 issues only is:
MS Service Desk on +44 (0) 207 379 2501
Changes will go live with effect from the 02 January 2006. New reports/invoice will be circulating early February 2007.
Attachments
Formal Detailed Invoice - French Version or English Version