| Market: | All |
| Products: | All |
| Date: | 20 December 2006 |
Changes to LCH.Clearnet Fees on Euronext.liffe Derivatives - REMINDER
As previously announced on 27 September 2006, LCH.Clearnet has made a series of changes on fees for Euronext.liffe Equity and Financial derivative contracts. Some of these fee changes are already effective (implemented on 1 November 2006), others will come into force on 1 January 2007.
The aim of the Info Flash is to remind members of the changes that will be implemented in Paris on 1 January 2007. We expect these changes to result in an overall reduction in clearing and post-trade fees of over 40% when compared to current broker/client and house accounts.
Paris clearing and post-trade fee changes:
Clearing fees for American-style equity options will be reduced to 5c per contract for broker/client and house trades, and 3c for market maker trades; European-style fees will remain at 2c and 1c per contract respectively. The fee tariff for very large equity option trades will be unchanged.
Index options and futures will be charged 13c per contract for broker/client and house trades and 5c for market maker trades on options and electronic locals on futures.
Exercise and assignment fees will be introduced for all option contracts; for American-style equity options (contract size of 100) and index options (PXA) the fees will be 30c per contract for broker/client and house accounts and 5c per contract for market maker accounts. For Europeanstyle equity options the fees will be 5c and 2c per contract respectively.
Index future cash settlement fees will be reduced to the same levels of 30c for broker/client and house accounts and 5c for electronic locals.
The current maximum monthly charge for market makers on options will be amended to an equivalent maximum charge of €100,000 per annum; option exercise and assignment fees will be included in this annual maximum charge.
As a reminder, the two steps approach for the fee changes implementation is:
Fee changes already implemented on 1 November 2006: London financial derivative post-trade, Amsterdam Exercise (Tender) and Assignment, Brussels clearing and posttrade as well as Lisbon clearing and post trade
Fee changes to be implemented on 1 January 2007: Amsterdam clearing, Paris clearing and post-trade as well as London equity and index derivatives post-trade.
For further information, please contact your local relationship manager