LCH.Clearnet Ltd – EquityClear Fee Tariff Changes

Dear Member

The LCH.Clearnet Limited ("LCH ") EquityClear service is committed to enabling efficiencies and offering members the maximum economic benefit of consolidated clearing.

Effective 1 May 2016, we are pleased to offer:

1. An amendment to our existing “Interoperable Incentive” that will offer members, who meet current eligibility criteria, a choice; and  
2. An additional consolidation incentive for members who are intending on consolidating with LCH who will receive the discount whilst they prepare the migration

Conditions below:

Amendment to "Interoperable Incentive I" – more choice

• Members must meet eligibility criteria for our existing “Interoperable Incentive”, details as per circular 3687
• Members will be able to elect for either a 10% discount on LCH Ltd clearing fees or continue with the 10% discount on the “LCH SA clearing fees in addition to the existing 15% discount on the LCH Ltd clearing fees.
• Any eligible member must choose which discount they prefer after which the member cannot switch between the options for a twelve month period following activation of the incentive.

Addition of a "Consolidation Incentive" for 2016

• Members must commit to migrate clearing to LCH. Once the commitment is confirmed, LCH will calculate the future clearing fee and apply it to the existing cleared volume.  The incentive will not be available for a period exceeding six months and the future clearing volume plus the existing clearing volume will be capped at 500,000 trades a day in line with the current clearing fee cap.
• In addition, those members that are migrating Swiss and UK MTF activity to LCH, that will net with existing activity derived from London Stock Exchange (SETS) and SIX Swiss Exchange will not be charged settlement fees for the duration of the incentive (a maximum of six months).
• Once all activity is migrated to LCH, the incentive expires and the member will be charged under the applicable tariff.
• If a member commits to consolidate clearing to LCH and does not migrate clearing within the maximum six month period, LCH will calculate and recover from the member the difference in clearing and settlement charges arising from the incentive and due to LCH.
• This offer only applies to those members that are currently not benefiting from an LCH interoperable incentive.
• This offer expires on 30 December 2016.

For further information please contact Ian Mackenzie Email: ian.mackenzie@lch.com or Tel: + 44 (0) 20 7426 7265

Tim Beckwith
Head of Sales & Relationship Management, Equities
P: + 44 (0) 20 7426 7276
M: + 44 (0) 7515 597233
lch.com