Membership - Ltd

Minimum acceptance criteria exists for Clearing Members and Dealers:

• minimum levels of Net Capital;
• appropriate banking arrangements;
• staff of sufficient experience and knowledge of the products being cleared;
• appropriate systems to cope with their clearing activities;
• RepoClear and SwapClear Members and Dealers must be wholesale market participants. RepoClear Members and Dealers must be rated BBB or above, and SwapClear Members and Dealers must be rated A or above, or have appropriate arrangements in place with a rated parent company

For full Clearing Member Status criteria, refer to the Rulebook: Section 1 - Clearing Member, Dealer and Other Non-Clearing Member Status.

All potential applicants for Clearing Member, Dealer or Third Party Participant status must sign binding legal agreements with LCH.Clearnet Limited.

Costs

Application fee of £1,500.00 + VAT.

Clearing Members must contribute to the Default Fund, which is split, for contribution purposes only into four segments:

• Exchange Fund Amount, minimum contribution £100,000
• EquityClear Fund Amount, minimum contribution £1,000,000
• RepoClear Fund Amount, minimum contribution £1,000,000
• SwapClear Fund Amount, minimum contribution £2,000,000

Contributions are re-calculated quarterly and are dependant upon the levels of activity of each Clearing Member in relation to the market as a whole. Interest is paid on Default Fund contributions of three month LIBOR plus 100bp.

For further details please contact the Membership department by email on membership@lchclearnet.com.