LCH LIMITED

PROCEDURES SECTION 2I

FOREXCLEAR CLEARING SERVICE
Clearing House Procedures ForexClear Service 

LCH Limited © 2021 - 55 - May July 2022

Porting Client Account referable to such Initial DMA, 

pro rata according to the Pre-Default TMR Ratio of 

each such Affected Non-Porting Client Account; and 

(B) Where the DMA to which the Interim Amount was 

attributed is a Merged DMA, the Clearing House will 

further attribute such amount to each DMA that was 

combined to form such Merged DMA, pro rata 

according to the Pre-Merger TMR Ratio of each such 

DMA. 

(iv) If the Clearing House attributes an amount to a DMA under 

subparagraph (iii)(B) above, then it will further attribute such 

amount according to the method specified in subparagraph (iii) 

(treating such amount as an Interim Amount for the purposes of 

subparagraph (iii)) until all amounts are attributed to NonPorting Client Accounts. 

(f) Attribution of Auction Results 

The Clearing House shall attribute the Auction Result, in respect of the 

sale of an Auction Portfolio, to each Affected Non-Porting Client 

Account referable to the Final DMA from which such Auction 

Portfolio was formed, pro rata according to the Pre-Default TMR Ratio 

of each such Affected Non-Porting Client Account. 

(g) Collateral 

The Clearing House shall hold the relevant Collateral in respect of 

each Non-Porting Client Account in its applicable Client Account until 

the process described in this Section 1.10.8 has been completed.

1.10.9 Calculation Period

Notwithstanding the definition of "Auction Losses Calculation Period" in Rule 

1.4 of Schedule 3 of the Default Rules, on and from the date determined by the 

Clearing House, the following definition will apply for the purposes of the 

ForexClear DMP Annex: 

"Auction Losses Calculation Period" means, in respect of an Auction 

Portfolio and the business day on which the Clearing House auctions 

and sells such portfolio, the period: 

(a) commencing immediately after the Daily Calculation Period for 

the previous business day; and

(b) ending at the point at which the Clearing House sells such 

portfolio; 

where: 
Clearing House Procedures ForexClear Service 

LCH Limited © 2021 - 56 - May July 2022

"Daily Calculation Period" means, in respect of a business 

day, the period, in respect of which the Clearing House 

determines the end of day margin and settlement payments for 

ForexClear Contracts for such business day.

1.11 Provision of Tax Forms

The Clearing House and each FXCCM shall provide to each FXCCM or the Clearing 

House, as relevant, (i) any forms or documents specified in the ForexClear Contract 

between the Clearing House and the FXCCM and (ii) any other form, document, 

statement or certification reasonably requested in writing by the FXCCM or the 

Clearing House in order to allow the FXCCM or the Clearing House to make a 

payment under the Rules of the Clearing House or any ForexClear Contract without 

deduction or withholding for or on account of any tax or with such deduction or 

withholding at a reduced rate unless the Clearing House or the FXCCM can no longer 

deliver such form, document, statement or certification solely as a result of a change 

in law (including double tax treaty) or interpretation thereof after the date of the 

ForexClear Contract between the Clearing House and the FXCCM. In the case of the 

Clearing House, the forms required pursuant to item (ii) above include an Internal 

Revenue Service Form W-8BEN. Additionally, the Clearing House will take such 

further actions as necessary to ensure that payments made to it can be made without 

deduction or withholding for or on account of any Tax.

1.12 ForexClear Client Clearing

1.12.1 ForexClear Clearing Client Clearing – Ancillary Documentation

(a) Security Deed: Unless specified otherwise by the Clearing House, a 

ForexClear Clearing Member must enter into a Security Deed in 

respect of its Clearing Clients in relation to amounts due to it from the 

Clearing House pursuant to the Client Clearing Annex. Further 

information in relation to such Security Deed is prescribed by the 

Clearing House from time to time and published on the Clearing 

House's website.

(b) Prescribed Language and End-User Notice: Pursuant to the Clearing 

House's General Regulations, each ForexClear Clearing Member is 

required to ensure that it includes certain language in its agreement 

with its ForexClear Clearing Client (the "Clearing House Prescribed 

Language"). The Clearing House Prescribed Language is shown at 

Schedule 1 of the Procedure .

ForexClear Clearing Clients' attention is drawn to the End-User Notice 

which is published on the Clearing House's website:

http://www.lch.com/about-us/governance/end-user-notices