LCH Ltd (LCH) EquityClear will settle ICSD-issued Exchange Traded Products (ETPs) in CBL
Clearstream Banking1 informs clients that from trade date
3 March 2025
LCH Ltd (LCH) EquityClear intends to start settling ICSD-issued Exchange Traded Products (ETPs) directly in Clearstream Banking S.A. (CBL) (using its own account 85068) for settlement with counterparties that have CBL or CBF-i accounts. The list of securities eligible to this service is available at LCH.
N.B.: Any cash-only movements created following a non-standard netting scenario will be instructed into CBL as a delivery or receipt against payment message (per ISIN) with zero quantity.
Any in-flight settlements with a trade date prior to the above date will be settled via LCH’s settlement agent (under account 64449), as they are today.
Background
Several securities traded on various exchanges and Multilateral Trading Facilities (MTFs) settle in CBL. These include inter alia ICSD-issued Exchange Traded Products (ETPs), such as Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs) and Exchange-Traded Commodities (ETCs).
Impact on clients
Clearing members with CBL or CBF-i accounts who are providing LCH with a Power of Attorney (PoA), should complete a PoA (available on the LCH website).
Clearing members who are providing LCH with a PoA, must send the duly completed PoA to Clearstream Banking by 21 February 2025, to ensure successful implementation for 3 March 2025.
Interoperable central counterparties (CCPs) should take note of LCH’s standing settlement instructions (SSIs) change.
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.