LCH.Clearnet Ltd (LCH.Clearnet) is revising its EquityClear tariff structure to bring 1p clearing to trades cleared by the service.
The new structure is designed to reward clearing members and incentivise customers by creating real economies of scale.
All trades executed on the London Stock Exchange, BATS, Equiduct, PLUS Markets and SWX Europe and cleared by LCH.Clearnet will benefit from the new EquityClear fees. Based on current volumes, the average fee would fall 7%. Over 50% of volumes will be charged at 1p.
This latest reduction means that cash equity clearing fees in London will have been reduced by over 60% since January 2007. The EquityClear fee is an 'all in' clearing fee and, unlike many of its competitors, does not charge extra for failed trades or membership.
Roger Liddell, Chief Executive LCH.Clearnet said: "This move is intended to reward our largest EquityClear customers - the more they clear with us, the more they can clear at 1p and the cheaper their average fee. EquityClear offers a compelling combination of cost effective pricing combined with reliable infrastructure and innovative solutions. As the number of MTFs EquityClear clears for grows, so our members' clearing fees will fall."