Free Equity Clearing From LCH.Clearnet For Volumes Of 150k Plus

LCH.Clearnet Ltd (LCH.Clearnet) is set to introduce free equity clearing for average daily member volumes of over 150,000 trades a day.  This benefits both the exchanges and users by passing on economies of scale and lowering the frictional cost of post trade.  The new tariff will be implemented on 1st October.

Kevin Milne, director of post trade, London Stock Exchange said; “We are very supportive of these tariff amendments. In combination with our own ongoing tariff cuts, this move will further reduce the overall cost of trading for our major clients and make the service more compelling.  We will continue to work collaboratively with LCH.Clearnet and others to ensure that the users of our markets receive the most competitive offerings possible."

Wayne Eagle, director of equities, LCH.Clearnet said; “This supports our exchange clients, rewards customer loyalty and incentivises growth.  Customers get economies of scale, without having to choose between cost and the quality of clearing.”

This move is part of a restructuring of the equity clearing tariff.  Reduced clearing fees will be introduced for average daily volumes of over 50,000.*

The table below provides a comparison of the old and new clearing fees

* The new tariffs, effective from October 1st, will give members clearing more than a daily average of 50,000 trades a marginal cost of 1p per trade to 75,000 trades, when the marginal cost will fall to 0.5p.