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LCH Group Holdings Limited | LCH Limited | Banque Centrale de Compensation | LCH.Clearnet LLC

LCH Group Holdings Limited. Registered in England No. 4743602 Registered Office: 10 Paternoster Square, London, EC4M 7LS

RESTRICTED - EXTERNAL

VIA CFTC PORTAL

Mr Christopher Kirkpatrick

Commodity Futures Trading Commission

1155 21st Street NW

Three Lafayette Centre

Washington DC 20581

06 December 2023

Subject: Weekly Notification of changes to the LCH Limited Rulebook on Net Capital 

Requirements 

Dear Mr Kirkpatrick, 

Please accept this notification, pursuant to CFTC regulations §40.6(d) of a minor revision 

to the LCH Limited’s (“LCH”) Rulebook. 

LCH has amended Procedure 1 (Clearing Member, Non-Member Market Participant and 

Dealer Status) to correct a previously incorrect references to clearing member’s status in 

the different categories for net capital requirements. LCH has clarified that Category O and 

P is no longer in use, as well as that Category N is referred to in the FCM Rulebook. 

Should you have any questions regarding this submission please contact me at 

ebba.andersson1@lseg.com.

Yours sincerely,

Ebba Andersson

Regulatory Advisor
CORPORATE

LCH LIMITED

PROCEDURES SECTION 1

CLEARING MEMBER, NON-MEMBER MARKET 

PARTICIPANT AND DEALER STATUS
Clearing House Procedures Clearing Member and Dealer Status 

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November April 2023

by the Clearing House, the terms of, and applicable to, each and every registered 

Contract, the Rulebook and all amendments to any of the foregoing. 

1.6.4 The Clearing Membership Agreement, the terms of any other agreement to 

which the Clearing House and the Polish Clearing Member are party which 

relates to the provision of central counterparty and other services by the 

Clearing House, the terms of, and applicable to, each and every registered 

Contract, the Rulebook and all amendments to any of the foregoing shall 

together constitute a master agreement (umowa ramowa) in the meaning of the 

Polish Bankruptcy Law (ustawa z dnia 28 lutego 2003 roku Prawo 

upadłościowe) and Polish Restructuring Law (ustawa z dnia 15 maja 2015 r. 

Prawo restrukturyzacyjne) between the Clearing House and the Polish Clearing 

Member and both parties acknowledge that all registered Contracts are entered 

into in performance of that master agreement. If that master agreement is 

terminated by the Polish Clearing Member or by the relevant bankruptcy or 

restructuring representative and such termination is enforceable under the 

relevant laws, this does not prejudice the Clearing House's rights under Rule 3 

of the Default Rules.

1.7 Net Capital Requirements

1.7.1 Categories of Clearing Member Status 

There are ten categories of Clearing Member status currently in use. These are 

as follows:

Category B

Rates Exchange - Clearing Member (clearing own 

business)

FCM Listed Interest Rates 

Clearing Member

Category C

FCM Listed Interest Rates 

Clearing Member

- (refer to FCM Rulebook)

Rates Exchange - (clearing own business and/or the 

business of NCPs and/or Listed 
Clearing House Procedures Clearing Member and Dealer Status 

LCH Limited © 2023 - 18 -

November April 2023

Interest Rates Client Clearing 

Business)

Category D

Category no longer in use.

Category E

Category no longer in use.

Category F

RepoClear Clearing Member in respect of RepoClear Clearing House Business. 

Category G

RepoClear Clearing Member in respect of RepoClear Clearing House Business 

and RepoClear Client Clearing Business. 

Category H

SwapClear Clearing Member.

Category I

EquityClear Individual Clearing Member in respect of EquityClear Clearing 

House Business. 

Category J

EquityClear General Clearing Member in respect of EquityClear Clearing 

House Business.

Category K

Special Clearing Member.

Category L

SwapClear FCM Clearing Member (refer to FCM Rulebook)

Category M

ForexClear Clearing Member

Category N

ForexClear FCM Clearing Member (refer to FCM Rulebook)
Clearing House Procedures Clearing Member and Dealer Status 

LCH Limited © 2023 - 19 -

November April 2023

Not in use

Category O

Category no longer in use.

Category P

Category no longer in use.

1.7.2 Net Capital Requirements 

The requirements set out below are the minimum requirements applicable to 

Clearing Members whose clearing relationship with the Clearing House is 

confined to the clearing of one market, subject, in relation to categories B to D, 

to an absolute minimum Net Capital requirement of £5mn sterling. The 

requirements may be satisfied in the currencies indicated or in foreign currency 

equivalents.

The requirements for Clearing Members who clear more than one market are 

detailed in Section 1.7.3. The definition of Net Capital is given in Section 1.8

(subject to a minimum of £5mn sterling).

Category A

Category no longer in use.

Category B

Net Capital £1.0mn per Service 

Category C

Net Capital £2.0mn per Service

Category D

Category no longer in use.

Category E

Category no longer in use.

Category F

Net Capital €100.0mn

Category G

Net Capital €400.0mn
Clearing House Procedures Clearing Member and Dealer Status 

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November April 2023

Category H

Net Capital US $50mn

Category I

Net Capital £5.0mn

Category J

Net Capital £10.0mn

Category K

See Section 1.7.4

Category L

Net Capital Refer to FCM Rulebook

Category M

Net Capital US$50mn

Category N

Net Capital Not in use Refer to FCM Rulebook

Category O

Not in use

Category PNot in use

Not in use

1.7.3 Cross-Market Net Capital Requirement for categories B-D and I-J 

Subject to the absolute minimum requirement of £5mn sterling, Clearing 

Members who clear more than one exchange (categories B – D) or have 

EquityClear Clearing Member Status (categories I – J), are required to meet a 

minimum Net Capital Requirement which is the sum of their specific 

requirements. For example, a Clearing Member acting as a General Clearing 

Member on the Rates Exchange Service (Category C - £2mn sterling) and as an 

EquityClear Individual Clearing Member (category I - £5mn sterling) has a 

minimum requirement of £7mn sterling. A Clearing Member acting as a 

General Clearing Member on Rates Exchange only (Category C - £2mn sterling) 

has a minimum requirement of £5mn sterling.