FCM PROCEDURES OF THE CLEARING HOUSE

LCH LIMITED
FCM Procedures FCM ForexClear

LCH Limited © 20221 - 120 - December January 20221

2.2.2 Users of FCM ForexClear Service

The FCM ForexClear Service is an interface that processes and stores all FCM 

ForexClear Transactions. FCM Clearing Members approved by the Clearing 

House to clear in the FCM ForexClear Service (“FX FCMs”), FCM Clients of 

FX FCMs and, in respect of hedging FCM ForexClear Transactions executed 

for the purpose of Risk Neutralisation, the Clearing House are known as 

ForexClear Participants (“FXPs”). For membership procedures, please see 

Section 1 of the FCM Procedures. 

For identification purposes each FX FCM is assigned a unique three-character 

mnemonic for purposes of the FCM ForexClear Service.

2.2.3 Termination of FX FCM Status

FCM Clearing Members should contact the Clearing House Onboarding 

Department (+44 (0)207 426 7891/7627/7063; onboarding@lch.com) for 

details of how to resign from the FCM ForexClear Service.

2.2.4 Service Scope

(a) Eligibility

FCM ForexClear Transactions may be presented for clearing through 

the FCM ForexClear sService. To be eligible to be registered as a 

ForexClear Contract, an FCM ForexClear Transaction must meet the 

FCM ForexClear Product Eligibility Criteria.

(b) Service Operating Hours

Opening Days:

The FCM ForexClear sService will be open each day, except 

weekends, Christmas Day, and New Year's Day and Good Friday4.

Opening Hours:

Unless notified otherwise, and subject to the sentence above under this 

Section 2.2.4(b), tThe FCM ForexClear sService will be open between 

20:00 hours, (London time), Sunday night and 01:00 hours, (London 

time), Saturday morning (“Opening Hours”). The FCM ForexClear

sService will not accept FCM ForexClear Transactions outside of these 

hours.

4

 While the FCM ForexClear service generally closed on Good Friday, the Clearing House may, by prior 

written notice to FCM ForexClear Clearing Members, open the FCM ForexClear service on such day, in 

which case it will be a Business Day.
FCM Procedures FCM ForexClear

LCH Limited © 20221 - 121 - December January 20221

The Clearing House will notify FCM ForexClear Clearing Members if 

the FCM ForexClear service is scheduled for closure for operational or 

other reasons.

2.2.5 Position Accounts

(a) FCM Accounts

For identification purposes, each FCM Clearing Member is assigned a 

unique three-character mnemonic with respect to its accounts relating 

to FCM ForexClear Transactions and FCM ForexClear Contracts. An 

FCM Clearing Member's position and financial information are further 

identified by position-keeping accounts corresponding to a single 

character code: C for client business and H for house business.

(b) Position-Keeping Accounts

FCM Clearing Member Accounts:

The account types are: H for house business (Proprietary Account); 

and C for segregated client business (FCM Omnibus ForexClear Client 

Account with LCH). An FCM Clearing Member's FCM ForexClear 

Contract positions are also recorded within the FCM ForexClear 

Clearing System in ForexClear accounts.

All registered FCM ForexClear Contracts will be identifiable to FCM 

Clearing Members via ForexClear Reporting (see Section 

2.2.242.2.24). All registered FCM ForexClear Contracts will be 

maintained only in ForexClear accounts (identified as such by a unique 

three letter mnemonic) and separate from all accounts containing FCM 

Contracts attributable to other Business Categories of FCM Contracts 

(provided that FCM Contracts attributable to any Business Categories 

of FCM Contracts and related Collateral may be physically 

commingled in the same depository accounts, subject to the 

requirements of the Rulebook to properly segregate all FCM Client 

assets). Each FCM ForexClear Contract will also be assigned a unique 

trade identifier. The FCM Clearing Member Reporting functionality 

also allows each FCM Clearing Member to identify all FCM 

ForexClear Contracts registered in its name.

Sub-accounts within the FX FCM's Proprietary Account may be set up 

(e.g., for branches). Each such sub-account will carry the unique Bank 

Identifier Code (“BIC”) (or equivalent unique identifier) of the 

relevant branch.

(c) Clients

Where an FX FCM enters into an agreement with an FCM Client in 

accordance with FCM Regulation 7(a) (FCM Client Business and 

Proprietary Account Trading), the FX FCM must submit an “FCM