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LCH SA Rule ReferenceLCH SA Rule - Short DescriptionPotential Implication for Firm (Brief note on why this unique rule might be relevant for discussion)
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Article 1.2.14 (Governing law)Specifies different governing laws for different parts of the CDS Clearing Documentation (French law for Rules/Admission Agreement; English law for CDS Clearing Supplement/Cleared Transactions; Belgian Law for Pledge Agreement; NY law for FCM/BD Regs).The multi-jurisdictional governing law framework is more complex than ICE's (which is primarily New York law under Rule 610). This could have significant legal and dispute resolution implications for the firm, requiring careful review by the legal team.
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Article 2.2.0.3 & 2.2.0.4Defines "General Member" vs. "Select Member" categories, where Select Members have elections regarding market data submission, participation in Competitive Bidding for default management, and nominating representatives for default management committees/groups.ICE has "Participant" and "Associate Clearing Participant". LCH's General/Select distinction primarily focuses on default management participation and data provision obligations. The firm would need to decide its preferred member type at LCH and understand the associated commitments, particularly if choosing to be a Select Member and its potential obligations if its activity crosses certain thresholds (Art 2.2.0.4).
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Article 5.1.2 (CDS Client Clearing DMP and Delegation)Details the "Delegation" mechanism (délégation imparfaite under French Civil Code) where the CCM has delegated to LCH SA the obligation to pay to the CCM Client an amount equal to the CDS Client Clearing Entitlement, if any.This specific French legal mechanism for client payment in a CCM default scenario is unique to LCH SA's framework and has no direct equivalent in the ICE rules. The legal and operational implications of this "délégation" would need careful review, especially concerning client money treatment and recovery in default.
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Section 1.2.13 (Data protection)Explicitly addresses LCH SA acting as a data controller under GDPR and French data protection law for personal data of Clearing Member/CDS Dealer representatives.While ICE would also comply with data protection laws, LCH SA Rulebook explicitly details its role under specific EU/French data protection laws (GDPR). This might entail slightly different data processing notices or considerations for EU/UK based staff data.
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