A single tariff is applied to a Member in relation to all contracts cleared by that Member and any Member of or Affiliated Firm of its Member Group, either for their own account or on behalf of a SwapClear Dealer or an Affiliate, within a calendar year. A new Member should notify LCH.Clearnet of its preferred tariff when joining the SwapClear service.
Tariff B: Introductory Tariff
Tariff A2: Standard Tariff
Tariff A1: Ultimate Tariff
In addition there is a one-off on boarding fee of £50,000 for each new SwapClear Clearing Member, FCM Clearing Member or SwapClear Dealer or Affiliate which is a member of, or an Affiliated Firm of, a Member Group.
A "Member Group" means a SwapClear Clearing Member or an FCM Clearing Member, its direct and indirect subsidiaries and its direct and indirect holding companies and every direct and indirect subsidiary of each such holding company, from time to time. For the purposes of this definition: (i) ‘subsidiary’ means a company in which an entity holds more than 50% of the voting rights; and (ii) ‘holding company’ means a company that holds more than 50% of the voting rights in another entity.
An “Affiliated Firm” in relation to a Member Group means a firm that satisfies both of the following tests:
a SwapClear Clearing Member or a FCM Clearing Member (or any other member of its Member Group) holds 50% or more of the voting rights in the firm; and
one or more SwapClear Clearing Members or FCM Clearing Members (or any other member of their Member Group) together hold more than 50% of the voting rights in the firm.
“Voting rights” means the rights conferred on shareholders in respect of their shares or, in the case of a company not having a share capital, on members, to vote at general meetings of the company on all, or substantially all, matters.”
Changes in a entity’s corporate ownership may lead to changes in the tariff that applies to it.
Terms used herein are as defined in the rulebook of LCH.Clearnet.
All clearing fees are payable in GBP.
Clearing fees under the SwapClear Client Clearing service are charged to the clearing member under a choice of two pricing plans.
Standard Pricing Plan
The Standard Pricing Plan has an up-front booking fee and an ongoing maintenance fee. In the standard plan both these fee components are volume dependent and may be reduced or eliminated based on cleared volume.
Clients on the Standard Plan can self identify for a volume discount based on the aggregate notional amount expected to be cleared at LCH.Clearnet in 2013. The plan covers all OTC IRS cleared by SwapClear and benefits will apply from the date of enrollment.
|Annualized Cleared Notional up to $250bn||Level 1
$250bn - $750bn
$750bn - $1.5trn
|Transaction Maturity||Actual Number Of Days Used In Calculation||Discount: 0%||Discount: 15%||Discount: 25%||Discount: 35%|
|0 - 1year||0-370||0.90||0.77||0.68||0.59|
|1 year+ to 3 year||371-1105||2.25||1.91||1.69||1.46|
|3 year+ to 5 year||1106-1831||4.05||3.44||3.04||2.63|
|5 year+ to 7 year||1832-2562||5.40||4.59||4.05||3.51|
|7 year+ to 10 year||2563-3670||7.20||6.12||5.40||4.68|
|10 year+ to 12 year||3671-4388||8.10||6.89||6.08||5.27|
|12 year+ to 15 year||4389-5484||9.00||7.65||6.75||5.85|
|15 year+ to 20 year||5485-7310||13.50||11.48||10.13||8.78|
|20 year+ to 25 year||7311-9136||16.20||13.77||12.15||10.53|
|25 year + to 50 year||9137-18275||18.00||15.30||13.50||11.70|
Example: Without a discount being applied, a new $100 million 5 year trade would incur a booking fee of $405. At its first anniversary there would be a maintenance fee charge of $300. If the trade is torn up before then, there is no maintenance fee charge.
From Q1 2014 the applicable discount will be based on the prior quarter’s notional activity. The trades from the prior quarter will be annualized and the discount in the table applied. E.g., Based on current notional schedule, a client clears $100Bn in aggregate across three clearing firms in Q2 2014. This represents $400Bn in annual clearing activity meaning that the client will qualify for a 15% discount for all trades cleared in Q3 2014. The discount schedule for 2014 will be released in December 2013 and is subject to regulatory review.
High Turnover Plan
The High Turnover Plan has an up-front booking fee and an on-going “risk consumption” maintenance fee.
USD 25 per ticket booking fee for new and backloaded trades (charged upfront)
Example: an average IM of $50 million equals an annual risk consumption fee of $50,000.
SwapClear charges all fees to clearing members; members individually make pricing arrangements with clients and confidentially notify SwapClear of the pricing plan for each client. Under the Volume Discount Plan, the client will receive an onboarding form from either LCH.Clearnet or their FCM, and will return the form directly to LCH.Clearnet with the appropriate notional amount selected. Clients can switch pricing plans quarterly, and must give SwapClear,LCH.Clearnet reasonable advance notice to make the operational changes necessary to effectuate such a change ,i.e. not less than fifteen (15) days prior to a calendar quarter that the firm elects to receive the alternative fee schedule.
Sales and Customer ServicePhil Atkinson
05 November - SwapClear Tolerance changes - LLC
05 November - SwapClear Tolerance changes - Ltd
29 October - Bilateral Termination