How we charge for CLSSettlement

Before the start of each year we set out our pricing tariff table which is based on the value settled and volume of instructions submitted. Value-based charges are determined each month, based on i) the total value of instructions settled through CLSSettlement by all settlement members; and ii) each individual settlement member’s value of instructions settled. Volume-based charges are based only on the number of instructions submitted to CLSSettlement for the individual settlement member.

Value-based charges

Each month we calculate the absolute unit price for each USD million of value settled for all settlement members, based on the total CLS average daily capped value settled. The cap is applied at a trade level, with any trade over USD100 million counted as USD100 million.

This unit price is then charged to all settlement members based on their total capped value settled in that month. During 2020 we estimate this charge to be, on average, between GBP0.18 and GBP0.22 for each capped USD million of value settled. However, this will depend on the overall level of market activity, which will vary each month.

Volume-based charges

For each settlement member, we tier charges based on incremental bands of instruction volumes submitted by that settlement member in the month. This starts at GBP0.25 and can reduce to GBP0.05 per instruction for the highest submitted volumes.

The same charging structure applies to all settlement members for their given level of volume. In particular, all members are subject to GBP0.25 on the first tier, but only some will get the lowest price from incremental volume. Hence, the overall blended charge for all instructions will vary for each settlement member, depending on their overall number of instructions submitted to CLSSettlement each month.

Other charges

Settlement members pay an account opening fee on joining and thereafter annual account maintenance and liquidity usage fees. In addition, settlement members may incur charges for late payment and fees for participation in our in/out swap service.

If you have any questions, please contact Trevor Suarez.

CLSSettlement overview