Cash Markets Fees
Fees applicable in 2008 Effective from 1 April 2008
For further information on fees, please send your request to lchclearnetsa_BILLINGINFO@lchclearnet.com.
The rates indicated below are expressed in euro and are subject to VAT at the applicable rate.
All the fees described in this fee grid are collected on the 10th open business day of the following month (monthly charged, except for Quaterly Banding fees)
Clearing fee
Guaranteed Postings: band tariff
LCH.Clearnet SAs Cash clearing fee is a band tariff which is made up of:
- A quaterly fixed banding fee,
A related banding clearing fee which includes a rate applied to each posting value, and a floor and a cap (per posting).
Each Clearing Member must choose1 - for each of its CMF code(s) - a band tariff that is applied for any of its postings on Cash markets cleared by LCH.Clearnet SA via this CMF code.
Clearing Members can change their band upwards or downwards every quarter.
In case of band move, Clearing Members are required to complete the application form2 and return it to LCH.Clearnet SA by 15th of the month preceding the end of the on-going quarter, allowing 10 open business days to implement.
1. A simulation tool is available on our website at http://www.lchclearnet.com/fees/sa/products/
2. Please contact your Relationship Manager to manage any change in your band choice.
| Band | Quaterly banding Fee | Banding clearing fee per posting | ||
| Floor | Rate | Cap | ||
A | 0 | 0.15 | 0.00310% | 1.00 |
| B | 12,500 | 0.05 | 0.00250% | 0.60 |
| C | 20,000 | 0.05 | 0.00235% | 0.60 |
| D | 32,500 | 0.05 | 0.00220% | 0.60 |
| E | 55,000 | 0.05 | 0.00210% | 0.60 |
| F | 87,500 | 0.05 | 0.00200% | 0.60 |
| G | 150,000 | 0.05 | 0.00190% | 0.60 |
The banding clearing fee per posting is given using the following formula:
Clearing fee per posting = Minimum [ Maximum ( Floor ; Posting Value X Rate ) ; Cap ]
Example:
A Clearing Member, for its XXX code having chosen the band C will be charged the following fees:
- 20,000 as quaterly fee for band C; this amount will be charged each quarter (early February for Q1, early May for Q2, early August for Q3 and early November for Q4)
- And the related banding clearing fee per posting: Floor of 0.05, rate of 0.00235% and Cap of 0.60 per posting; for instance,
- A posting of 1,000 will be charged 0.05 - Min [Max (0.05;1,000 x 0.00235%) ; 0.60]
- A posting of 8,000 will be charged 0.19 - Min [Max (0.05;8,000 x 0.00235%) ; 0.60]
- A posting of 15,000 will be charged 0.35 - Min [Max (0.05;15,000 x 0.00235%); 0.60]
- A posting of 30,000 will be charged 0.60 - Min [Max (0.05;30,000 x 0.00235%);0.60]
- A posting of 60,000 will be charged 0.60 - Min [Max (0.05;60,000 x 0.00235%);0.60]
Non-guaranteed Postings
A fixed fee of 0.05 is charged per non-guaranteed posting.
Clearing Services
Give-up/Take-up
LCH.Clearnet SA charges a fixed fee of 0.10 on each take-up only.
Delivery fees for LSE-DTS and NYSE Euronext markets
(non applicable to non-guaranteed postings)LCH.Clearnet SAs policy is to recharge Clearing Members with delivery fees as charged by the settlement platforms (i.e. CSDs/ICDSs) prorata each Clearing Members settlement volume on that given platform. It represents exclusively DVP and rebalancing costs charged by (I)CSDs excluding infrastructure costs. Any fee modification by any of the settlement platforms on that subject will be automatically passed on to Clearing Members.
Since January 2008, LCH.Clearnet SA charges back:
- A variable fee of approximately 0.41 (resulting from the sliding scale fee grid of Euroclear France - fee amount subject to quarterly review if needed) per instruction sent to settlement in Euroclear France,
- A variable fee of approximately 0.65 (resulting from the sliding scale fee grid of Euroclear Netherlands - fee amount subject to quarterly review if needed) per instruction settled in Euroclear Netherlands,
- A fixed fee of 4.00 per instruction settled in NIEC,
- A fixed fee of 0.08 per instruction settled in Interbolsa
- No delivery fee applied for instructions sent to settlement in Euroclear Belgium until further notice,
- A variable fee of approximately 1.34 (average amount observed in the fourth quarter 2007) per instruction sent to settlement in Euroclear Bank
Settlement related costs for Luxemburg Stock Exchange market
(non applicable to non-guaranteed postings)LCH.Clearnet SAs policy is to recharge Clearing Members with settlement related costs prorata each Clearing Members settlement volume on a given ICSD platform. It represents exclusively DVP costs charged by ICSDs and messages costs charged by SWIFT. Any modification done on those fees will be automatically passed on to Clearing Members.
- A variable fee of aproximately 1.50 per instruction sent to settlement in Euroclear Bank,
- A variable fee of aproximately 1.50 per instruction sent to settlement in Clearstream Banking Luxemburg,
The amounts of the settlement related costs are subject to quarterly review if needed.
Fail penalty fees
(non applicable to non-guaranteed postings)The fail penalty fees are applied to Clearing Members whose transactions fail during the delivery and payment procedures.
The invoicing of penalties applies per open business day on each selling fail per ISIN code, per Delivery Account (all settlement dates aggregated) and per Clearing Member.
The fail penalty fee is made up of:
- A fixed fee of 15.00,
- A variable fee (EONIA rate /360 x amount), capped at 500.00 - Effective EONIA rate used as of October 2008 is 4.3%; unless significant changes are registered, such a rate will be revised each semester.
The sum of the variable parts collected is passed back to Clearing Members on a monthly basis according to the following rules:
- The passing back is calculated per segment; the variable part of fail penalty fee of a given segment is passed back to Clearing Members active on this segment only,
- The allocation key is the cash clearing fees paid by each Clearing Member for a given segment,
- The passing back monthly amount for a given Clearing Member cannot be higher than the variable fail penalty fee effectively paid by this member for the month.
The net difference between fail penalty fee and passing back is collected on the 10th open business day of the following month (example: 10th open business day of February for January fails).
Cash fail penalty
(non applicable to non-guaranteed postings)These penalties are applied to Clearing Members whose transactions fail during the delivery and payment procedures. A fee is charged for each business day the default of cash remains unsettled: value of the fail charged at EONIA + 2%.
Buy-in / Purchase costs
(non applicable to non-guaranteed postings)A fee of 150.00 is charged for each buy-in process initiated by LCH.Clearnet SA in addition to any amount due to meet the cost of purchasing the securities.
If a Member commits to delivering securities in the context of a buy-in procedure and LCH.Clearnet SA notes that this Member fails to deliver them, a penalty of 10% of the closing rate multiplied by the quantity of non delivered securities will be applied to the Clearing Member that had committed to delivering the securities.