EquityClear OTC CFD Model Service Description
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EquityClear
OTC CFD Model
Service Description
Commercial in Confidence
Issued : 30/10/2013
Not for distributionEquityClear OTC CFD Service Description
Table of Contents
1. INTRODUCTION .............................................................................................................4
1.1 Service overview - execution ....................................................................................4
1.2 Readership ...............................................................................................................5
2. SERVICE OVERVIEW ....................................................................................................6
2.1 Service overview - clearing.......................................................................................6
2.2 Products ...................................................................................................................6
2.3 EquityClear Functions ..............................................................................................6
2.4 Trade management ..................................................................................................6
2.5 Position management...............................................................................................6
2.6 Settlement management ..........................................................................................7
2.7 Risk management ....................................................................................................7
2.8 Financial management .............................................................................................7
2.9 Reconciliation ...........................................................................................................7
3. PARTICIPANTS ..............................................................................................................8
4. POSITION MANAGEMENT ............................................................................................9
4.1 Member accounts.....................................................................................................9
4.2 Trading firms ............................................................................................................9
4.3 Client Segregation ....................................................................................................9
5. TRADE MANAGEMENT ...............................................................................................14
5.1 Trade validation......................................................................................................14
5.2 Trade correction .....................................................................................................14
5.3 Trade types ............................................................................................................14
5.3.1 Member accounts & client segregation .......................................................................... 14
6. RISK MANAGEMENT ...................................................................................................16
6.1 Introduction ............................................................................................................16
6.2 Overview ................................................................................................................16
6.3 Default Management ..............................................................................................16
6.4 Membership ...........................................................................................................17
6.5 Margin Calculation & Payments..............................................................................17
6.6 Margin Cover & Payments......................................................................................18
6.7 Margining Summary: ..............................................................................................19
7. SETTLEMENT MANAGEMENT....................................................................................20
8. TARIFFS .......................................................................................................................21
8.1 Introduction ............................................................................................................21
9. MEMBER REPORTS & TRADE CONFIRMATIONS .....................................................22
9.1 Member Reports ....................................................................................................22
9.2 Member real time confirmations .............................................................................23
10. ABBREVIATIONS.........................................................................................................24
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The copyright in this work is vested in LCH.Clearnet Ltd and is issued in confidence for the purpose for which it is
supplied. It must not be reproduced in whole or in part or used for tendering or manufacturing purposes except
under an agreement or with the consent in writing of LCH.Clearnet Ltd and then only on the condition that this
notice is included in any such reproduction. No information as to the contents or the subject matter of this
document or any part thereof arising directly or indirectly there from shall be given orally or in writing or
communicated in any manner whatsoever to any third party being an individual firm or employee thereof without
the prior consent in writing of LCH.Clearnet Ltd.
© 2013 LCH.Clearnet Ltd.
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1. INTRODUCTION
1.1 Service overview - execution
LCH.Clearnet operates a central counterparty service for the clearing and settlement of cash
equities.
The EquityClear service has been expanded to include Contracts For Difference (CFDs) and
will be tailored to clear OTC CFDs, Synthetics & Futures from the broker trade source
The diagram below is a high level diagram describing the trading model for. Trades between
client and broker, as well as Hedge trades will be cleared by the LCH EquityClear service.
The ATP may delegate authority to send in trades to Prime Brokers
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1.2 Readership
This Service Description provides the reader with a general overview of the EquityClear
service for OTC CFDs.
It is drafted as a generic document that highlights the differences in functionality or process,
where they exist, between the standard EquityClear service for cash equities and the OTC
EquityClear service for CFDs.
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2. SERVICE OVERVIEW
2.1 Service overview - clearing
OTC trades will be sent to LCH via a dedicated FIX interface. LCH will novate the OTC
trades and clear both sides of the transaction.
LCH Clearing hours will be 07:30 to 21:30GMT (adjusted for daylight savings as
appropriate).
2.2 Products
The table below describes the main product types and whether they are cleared;
Security class Initial MTM P&L Financing Expires Launch
Margin
Single name Daily & Daily No No EU
Equity CFD Intra-day Reset UK
US
Single name Daily & Daily No No EU
synthetics Intra-day Reset UK
US
Indices Daily & Daily No No EU
Intra-day Reset UK
US
The OTC contracts traded are defined by the broker.
For the purpose of this document the term CFD will be used to describe all the products
above, unless specifically distinguished.
2.3 EquityClear Functions
The EquityClear service will comprise the following key functions for CFDs:
2.4 Trade management
CFD trades are received and validated to ensure they correctly identify valid Trade
Participants. Approved/valid trades are novated placing LCH.Clearnet Ltd as the legal
central counterparty. Trades are registered and details enriched to clear in line with the
members’ preferences.
2.5 Position management
As trades are received by LCH.Clearnet they are legally added to the member’s positions in
real time. In other words as a member’s trade hits LCH.Clearnet the obligation of that trade
is transferred to the real time net position per CFD instrument (ISIN/currency/trading
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platform) per trade participant. Following margin calculations. Daily P&L flows are applied.
Trades are added to existing positions on a real time basis.
2.6 Settlement management
CFDs are daily rolling cash settled and thus no connection to a CSD or settlement agent for
CFDs is required.
2.7 Risk management
CFD trades will be margined on the Equity Risk Analysis (ERA) algorithm as per equities,
and equity & index related CFD positions will offset for initial margin purposes where
appropriate.
CFD settlement to market (i.e. variation margin) will be in cash (while equities will remain as
contingent margin). Intra-day CFD margining will be contingent the same as equities.
Member defaults are managed by the LCH.Clearnet Risk Management department through
the existing LCH.Clearnet process and EquityClear portion of the default fund.
2.8 Financial management
The Treasury Department manages member’s cash and collateral for margin cover and
payments as well as financing and stock borrow payments to Clearing Members.
2.9 Reconciliation
LCH.Clearnet will perform trade reconciliation with the trading platform daily after the close of
business, which is expected to be at approximately 9.15pm each evening. Trade
reconciliation will confirm whether LCH.Clearnet has received all trades accurately.
LCH.Clearnet is the legal register of all CFD positions generated.
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3. PARTICIPANTS
As a central counterparty, LCH.Clearnet becomes the buyer to the seller and the seller to the
buyer for each trade it clears. The buyer and seller must each be a member of LCH.Clearnet,
must be acting in a principal capacity and must be one of the two membership categories
which confer Clearing Member status, namely:
An Individual Clearing Member (ICM), which can:
clear trades it executes as a participant of a trade source1.
A General Clearing Member (GCM), which can:
clear trades it executes as a participant of a trade source.
clear trades executed by other participants of a trade source.
EquityClear supports a membership category which does not have Clearing Member status,
namely:
A Non Clearing Participant (NCP), which can:
execute trades as a participant of a trade source using the services of a GCM to
clear such trades.
Full membership details can be found on our website at
http://www.lchclearnet.com/membership/ltd/default.asp.
1
A Trade Source being a source of matched trades to LCH.Clearnet, including exchanges, MTFs, MROs and
OTC matching services.
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4. POSITION MANAGEMENT
The open principal positions between LCH.Clearnet and its members are maintained in real
time as trades are registered on a net per trade participant account per ISIN basis.
4.1 Member accounts
Each member can operate using one or more notional business units which are each
identified by a unique ‘member mnemonic’.
For each member mnemonic two sub-accounts are available, a mandatory House account,
and an optional Client account. Each member mnemonic and sub-account combination is
referred to as a ‘member account’.
Positions are netted per member account for the purposes of margin calculation and cover.
Therefore each trade and settlement must be attributable to one member account.
4.2 Trading firms
The buyer and seller of each trade are given a unique identifier by the trading platform. Each
trading firm so identified is the primary determinant of the member account through which the
trade is cleared.
EquityClear maintains positions per trading firm and reports these to clearing members.
EquityClear allows for such trading firm identifiers to be grouped into a new single trading
firm identifier. The new trading firm identifier is substituted at the start of the clearing process
and is used for trade enrichment as if it had been sent in the trade details from the trading
platform2.
4.3 Client Segregation
Under EMIR CCPs are required to provide for the segregation of client positions, the key
relevant text being as follows.
1. A CCP shall offer to keep separate records and accounts enabling each clearing
member to distinguish in accounts with the CCP the assets and positions of that
clearing member from those held for the accounts of its clients (‘omnibus client
segregation’). [Level 1, Article 39(2)]
2. A CCP shall offer to keep separate records and accounts enabling each clearing
member to distinguish in accounts with the CCP the assets and positions held for the
account of a client from those held for the account of other clients (‘individual client
segregation’). Upon request, the CCP shall offer clearing members the possibility to
open more accounts in their own name or for the account of their clients. [Level 1,
Article 39(3)]
3. ... At the request of a clearing member, the CCP shall maintain separate records and
accounts enabling each client to distinguish in accounts held with the CCP the assets
and positions of the client from those held for the accounts of the indirect clients of
the client. [Level 2 RTS (Indirect Clearing Arrangements), Article 3(1)]
2
To allow GCMs to pass on clearing fees to NCMs, volumes are reported using the original trading firm identifier
and not the grouped one.
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That is, the CCP needs to provide three levels of segregation for client business.
1. Omnibus segregation of client business from house business.
The established segregation achieved through the house and client member
accounts described above.
2. Individual segregation of client business from omnibus segregated client business.
This provides clients of clearing members the option to have their positions and
collateral segregated at the CCP so that they can port these to a new clearing
member in the event of the default of their current clearing member.
3. Segregation of indirect client business from individually segregated client business3.
This provides clients of the client of a clearing member (indirect clients) the option
to have their positions and collateral segregated at the CCP from that of the client
of the clearing member.
The segregation is of both open positions and collateral lodged with the clearing house. The
position segregation is managed through the EquityClear service and the collateral
segregation is managed through the common LCH.Clearnet Treasury systems [Banking and
CMS (Collateral Management System)].
The different account segregation levels are illustrated below.
It should be noted that client segregation does not change the principal relationship between
LCH.Clearnet and clearing members on all cleared trades.
1. Omnibus client segregation
The diagram below shows an example client account structure of a clearing member where
all the client business is cleared through the client member account, also identified as a ‘Net
OSA’ (Omnibus Segregated Account).
3
Only required in EMIR for OTC derivatives but offered in EquityClear for cash equities.
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In EquityClear the only actual accounts are the Settlement Firms (position accounts). In the
example four are shown. The positions from all the position accounts are netted together to
provide an omnibus position for the purposes of calculating the associated margin liability.
This liability is sent to the Banking system as being against the omnibus client member
account (‘C’). An example is shown below for the above scenario.
2. Individual client segregation
The diagram below is as the previous example but where the clients’ whose positions are
held in Settlement Firms SFID3 and SFID4 have elected to have their positions individually
segregated, identified on the diagram as ISAs (Individually Segregated Accounts).
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Only the positions in Settlement Firms SFID1 and SFID2 are netted together to provide the
omnibus position for the purposes of calculating the associated margin liability.
The positions in SFID3 and SFID4 are used to calculate the margin liability for these
accounts individually. The liabilities for SFID3 and SFID4 are sent to the Banking system as
being against the corresponding individual collateral accounts Sxxx and Syyy. An example is
shown below for the above scenario.
3. Indirect client segregation
The diagram below is as the previous example but where the (indirect) clients of the client
using SFID4 want their positions segregated from those of the client. To do this the new
Settlement Firm SFID5 is created to hold the segregated indirect client positions, which could
be for one, some or all these clients. SFID5 is identified as an Indirect OSA on the basis that
it could hold the positions of more than one indirect client.
It is important to note that in order to segregate the indirect client positions the trades of
these clients must be executed using a different Trade Participant identifier on the trading
platform.
SFID4 holds the positions of the client and any of the indirect clients who did not opt for
indirect client segregation.
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The positions in SFID5 are used to calculate the margin liability for this account which is then
sent to the Banking system as being against the corresponding individual collateral account
Vzzz.
In the collateral systems the account IDs are differentiated, with ISA IDs starting with an ‘S’
and Indirect accounts starting with a ‘V’.
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5. TRADE MANAGEMENT
Trade details entered into the ATP system will be forwarded on to EquityClear on a
continuous real time basis. This information is used by EquityClear to process the trade for
clearing and to report appropriately to clearing members.
5.1 Trade validation
LCH.Clearnet checks that it is legally obliged to clear trades received from trade sources.
Trades would therefore be rejected if:
The CFD has not been agreed to be cleared by LCH.Clearnet.
A trading firm does not have clearing arrangements in place.
In both cases the trade source should not have sent the trade to LCH.Clearnet for clearing.
Trades received may fail initial validation for a range of technical, syntactical, logical or
operational reasons. All such cases will be investigated and sought to be resolved as soon
as possible on trade day, working internally and with the trade source and members as
necessary. No pending trades will exist overnight (unlike some equities which can in
exceptional circumstances). All trades will either by accepted as valid trades or rejected by
the close of business each day.
5.2 Trade correction
Where the broker has sent an invalid trade for clearing it can send a trade cancellation on
trade day and the trade will be removed from clearing.
The ATP can correct trades by sending a contra trade, being an opposite trade to the
original, to reverse the original trade. This is cleared as a new trade, with the trade
reference to the original trade reported by EquityClear.
5.3 Trade types
EquityClear accepts CFD trades with contract formation by novation.
5.3.1 Member accounts & client segregation
Each trade to be cleared is identified as having a dealing capacity of principal or agency and
optionally identified with a clearing sub-account4.
Members define through reference data the margin account through which each trade is to
be cleared. It is defined for each combination of:
Trade source
Settlement firm
Dealing capacity
Sub-account (optional)
The following table shows examples of the choices that can be made.
4
In general the clearing account is not identified on the trade message. This may be because the trade source
does not provide the facility to do so or the Trading Participant chooses not to provide it.
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Trade Settlement Dealing Sub- Member Sub-
Source Firm Capacity account mnemonic account
XXXX BIC12345 Principal (P) MMA House (H)
XXXX BIC12345 Agency (A) MMA Client (C)
XEEE BIC98765 Principal (P) House (H) MMA House (H)
XEEE BIC98765 Principal (P) Client (C) MMA Client (C)
XEEE BIC98765 Agency (A) House (H) MMB Client (C)
XEEE BIC98765 Agency (A) Client (C) MMB Client (C)
The first two rows show the case where no sub-account is provided on trades and the rest
where it is provided. It can be seen in the fifth row that the sub-account defined by the
member is different from the one provided on the trade. This caters for the situation where
an NCP may incorrectly mark a trade to be cleared through the house clearing account whilst
the GCM wants all the NCP’s business cleared through their client clearing account. In this
way the GCM can auto-correct the NCP’s mistake.
Members can further define through reference data that the positions in a Settlement Firm
are to be segregated from the omnibus client account. This Settlement Firm then operates as
either an ISA or Indirect OSA as described in the Position Management section above.
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6. RISK MANAGEMENT
6.1 Introduction
The Clearing House provides robust and prudent risk management in order to meet its
overriding objective: to provide Clearing Members with a central counterparty of the highest
quality and to safeguard the interests of the company's shareholders and contributors to its
Clearing Funds.
LCH.Clearnet Ltd is a CCP of long standing with an extensive record of successful risk
management. To support members and interested parties detailed presentations on the
following topics can be found on our website at
http://www.lchclearnet.com/risk_management/ltd/overview/default.asp
LCH.Clearnet – General Introduction to Risk Mitigation
Risk Management compared to External Standards
Default Protections
LCH.Clearnet – Default History
Clearing Members (membership criteria and member monitoring)
6.2 Overview
LCH.Clearnet, in assuming the role of central counterparty to the CFD market, will have
explicit contractual relationships with its Members. This relationship is set out in the Clearing
House Rulebook and the bilateral Clearing Membership Agreement that the LCH.Clearnet
has with its Members.
The normal equity GCM, ICM, NCM (trade participant) structure will apply to CFDs.
CFDs will be margined by ERA using the underlying securities’ published prices, pre
corporate event changes for equities.
EOD CFD positions are settled to market as cash only payments (cash equities is contingent
margin) and intra-day as contingent margin (the same as equities).
6.3 Default Management
CFDs will be added to the EquityClear section of the default fund and no increase in the
default fund is expected on launch. The standard/usual LCH.Clearnet Ltd Default
Protections would be applied in the order shown.
1. Membership Criteria
2. Variation Margin
3. Initial Margin
4. Intra-day Margining
5. Defaulter’s own Default Fund Contribution
6. Ltd’s own capital (capped)
7. Remaining Default Fund
8. Remainder of Ltd’s capital
In the event of a member default non-defaulters’ positions are unaffected.
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LCH.Clearnet closes out the defaulter’s positions and where necessary to cover losses uses
the member’s margin followed in order by items 5-8 in the list above.
Members (ICM or GCM) are required to contribute to the Default Fund. The contribution is
recalculated quarterly. Each member’s contribution is based upon their proportion of the total
initial margin requirement and their proportion of the total traded volume during the previous
quarter. The minimum contribution to the default fund is GBP 1 million.
6.4 Membership
EquityClear Clearing Members that wish to join the CFD service will be required to conduct
thorough testing and sign a Clearing Agreement Schedule for each CFD market they wish to
clear to extend their existing EquityClear Membership.
6.5 Margin Calculation & Payments
EquityClear uses the Equity Risk Analysis, “ERA”, algorithm for the calculation of initial and
variation margin. ERA was specifically designed for this service to maximise portfolio offsets
across all EquityClear markets, thereby keeping margin requirements low compared to other
methods, whilst meeting the necessary level of Risk Management prudence5.
Full details of the ERA algorithm are provided in a separate document, the ERA TIP
(Technical Information Pack), which more details can be found on our website at
http://www.lchclearnet.com/risk_management/ltd/margining/equityclear.asp . This includes
an overview of margin terminology and the algorithm, full calculation details and worked
examples including full test data.
LCH.Clearnet can make available PC ERA, a PC tool which performs the margin algorithm.
LCH.Clearnet publishes its margin parameters. Current and historical data can be found on
our website at http://www.lchclearnet.com/data_downloads/ltd/era.asp . Interested parties
can use these to determine the margin requirements for portfolios they may wish to test.
At the end of each trading day a margin calculation is made, the results of which are
integrated into the margin requirements for each member account across all LCH.Clearnet
product services.
A mid-day margin calculation is made and where there is insufficient cover an intra-day
margin call will be made.
Further intra-day margin runs are made regularly and the facility for ad-hoc calculation due to
exceptional circumstances is available to the Risk Management department. Additional
margin calls can be made based on these calculations but they are not a frequent
occurrence.
ERA will be used for CFDs (and cash equities) for the calculation of initial margin (IM),
variation margin (VM/unrealised P&L) and marked to market payments (MTM/realised P&L
for CFDs). Existing PPS arrangements will be used for collecting margins on CFDs. IM and
VM will be collected in the same currencies and terms that exist today for cash equities.
MTM will be collected in the cash of the currency of the CFD.
5
LCH.Clearnet Ltd has a stated aim that its risk management should be best practice. It reviews its risk
management against the following external standards: European Association of Central Counterparty Clearing
Houses (EACH) standards of risk management control;
the CPSS-IOSCO Recommendations for Central Counterparties
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The PPS system will also be used to collect fees, for financing and stock borrow flows and
cash movements on relevant corporate events.
The process for end-of-day (EOD) margin calculations is as follows:
Step 1: Run MTM - All existing positions (T) are cash settled daily (marked to market) to the
night before’s EOD equity price (T-1). Thus all existing CFD positions effectively have a
trade price of the night before’s EOD equity price (T-1). For trades that occur intra-day the
trade price forms the base price to use for EOD margining on T.
Note that all intra-day CFD margining is contingent so when the EOD run is performed the
intra-day collections are effectively ignored in the calculation and credited back to members.
Step 2 & 3: Run IM and VM - The VM run will generate a contingent margin of near zero as
Step 1 has already realised the Member’s potential VM. CFD IM is a contingent margin
collection due on all open CFD positions.
CFD and equities on the same stocks will be offset for margin calculations.
Therefore, if a Clearing Member has an equal and opposite position between equities and
CFDs the positions should be risk offset to reduce the initial margin to zero (if mid-pricing is
used) or near zero (if bid and offer spread is used). Note this can only occur during the three
days that LCH.Clearnet is the counterparty to the equity trades.
6.6 Margin Cover & Payments
Initial Margin is always calculated in GBP, though can be covered by cash in a broad range
of currencies and a range of other collateral.
LCH.Clearnet Ltd operates a direct debit system, known as the Protected Payments System
(PPS), for the transfer of funds to and from clearing members. A clearing member is required
to maintain a PPS bank account in London in GBP and others as required. Further details
can be found on our website at
http://www.lchclearnet.com/risk_management/ltd/pps/default.asp
Any cash paid in respect of margin receives credit interest at the London Deposit Rate6.
Other acceptable collateral includes Government Securities, Certificates of Deposit and
performance Bonds. Full details of acceptable currencies and collateral can be found on our
website at
http://www.lchclearnet.com/risk_management/ltd/acceptable_collateral.asp
The option to post collateral via Euroclear Autoselect is available.
Members can achieve collateral efficiencies from the netting and consolidation of margin
requirements across their business with LCH.Clearnet Ltd, covering all products and
services.
6
London Deposit Rate is calculated daily for each currency by 10:00 hours. It is derived from bid rates for
overnight funds quoted by selected money market brokers and/or major banks. For next-day value currencies,
LDR is calculated the day prior using tom/next rate.
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6.7 Margining Summary:
Settlement to
Intra-Day Initial Margin Variation Margin
Market
Equity Contingent Contingent N/A
CFD Contingent Contingent N/A
Settlement to
End-of-Day Initial Margin Variation Margin
Market
Equity Contingent Contingent N/A
Contingent
CFD Contingent Cash
(will be zero VM)
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7. SETTLEMENT MANAGEMENT
CFDs are a daily cash settled derivative through our PPS service and as such have no
physical settlement in a CSD. In other words, LCH.Clearnet realise the profit and loss on
Members’ CFD positions daily. Thus no settlement infrastructure is required for this service.
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8. TARIFFS
8.1 Introduction
CFDs will be added to existing Clearing Member equity volume to determine the member’s
overall volume and appropriate tariff. Thus CFDs and equities will be treated the same for
clearing tariff purposes. The clearing tariff uses the average daily volume cleared over a
month to determine the fee charged per trade. The higher the volume reached the lower the
fee per trade.
Membership of EquityClear will permit Clearing Members to become clearers of either
equities or CFDs or both. Existing members of the EquityClear service will already qualify for
the CFD service from a tariff perspective. They will not be required to pay a new joining or
administration fee. Clearing Members that want to join EquityClear simply to clear CFDs will
have to meet the same criteria as if they were joining the service to clear equities.
Since CFDs are not physically settled there are no CSD costs that will be required to be
passed back to Members.
Fees are collected through the Protected Payments System.
Details can be found on our website at
http://www.lchclearnet.com/tariffs/ltd/transactions/equityclear.asp
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9. MEMBER REPORTS & TRADE CONFIRMATIONS
9.1 Member Reports7
For CFDs EquityClear will provide Clearing Members with the same suite of reports plus
some extra reports via its VPN, Extranet (as used by RepoClear, SwapClear and some
EquityClear users) and TRS, as follows:
Intra-Day (ITD):
- Both Equity and CFD Reports
EREP0001i – Margin – Positions at Clearing Account ITD
EREP0002i – Margin – Positions at Settlement Counterparty Level ITD
EREP0003i – Margin – Summary at Clearing Account Level ITD
EREP0004i – Margin – VM Detail at Clearing Account Level ITD
End-of-day (EOD):
- Both Equity and CFD Reports
EREP0001e – Margin – Positions at Clearing Account EOD
EREP0002e – Margin – Positions at Settlement Counterparty Level EOD
EREP0003e – Margin – Summary at Clearing Account Level EOD
EREP0004e – Margin – VM Detail at Clearing Account Level EOD
Other:
- Both Equity and CFD Reports
EREP0007 – Fees – Fee Basis Breakdown
This is a monthly report. It will normally be available on the second business day of the next
month, but may vary.
Intra-Day (ITD):
- CFD Report only
EREP0008i – CFD Trade Report ITD
End-of-day (EOD):
- CFD Reports only
EREP0009 – CFD End of Day Mark to Market Positions Report
EREP0012 – CFD Corporate Events Report
EREP0013 – CFD Cash Distribution Payments Report
EREP0014 – Start of Day CFD Positions Report
End-of-day (EOD):
- Both Equity and CFD Reports
EREP0016 – Fees – Settlement Cost Breakdown
7
Please see the EquityClear Extranet Member Report Formats document for complete information
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9.2 Member real time confirmations8
LCH.Clearnet is investing in new member services, improving and increasing the information
flow between LCH.Clearnet and its members. Real time messaging using industry standards
is one such area of expansion.
Enhancements to the network infrastructure will support these initiatives. For many members
the core infrastructure is already in place and may just require capacity upgrades.
Members will have flexibility to choose which products and markets they want to receive as
they become available.
8
Please see Member Real Time Confirmations document for complete information
Commercial in Confidence
Page 23 / 24 Issued : 30/10/2013EquityClear OTC CFD Service Description
10. ABBREVIATIONS
CCP Central Counterparty
CESR Committee of European Securities Regulators
CFD Contract For Difference
CPSS-IOSCO Committee on Payment and Settlement Systems - International
Organization of Securities Commissions
CSD Central Securities Depository
DTCC Depository Trust & Clearing Corporation
ERA Equity Risk Analysis
EUI Euroclear UK & Ireland
GBP Pounds Sterling (£)
GCM General Clearing Member
HMRC Her Majesty’s Revenue & Customs
ICM Individual Clearing Member
ISIN International Security Identification Number
LCH LCH.Clearnet Ltd
LIBOR London Inter-bank Offer rate
NCM Non Clearing Member
PPS Protected Payments System
SDRT Stamp Duty Reserve Tax
T Trade Date
UK United Kingdom
Commercial in Confidence
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