27 Mar 2025
💵LCH SA Proposes Changes to Cash and Securities Collateral Fees
Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Cash Spreads and Fees on Securities Collateral
Summary
LCH SA has submitted a proposed rule change to amend its fee structures for cash and securities collateral used as initial margin in its CDSClear service. The changes aim to enhance competitive dynamics and improve liquidity risk profiles by adjusting fees and spreads based on market conditions and operational considerations.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory text outlines proposed changes by LCH SA regarding fees on cash and securities collateral, which will directly affect clearing members' costs associated with margin requirements. The decrease in fees for USD treasuries and modifications to collateral spreads create a competitive landscape, impacting financial strategies and liquidity for businesses involved in these transactions.