From a press release issued by LCH.Clearnet...
LCH.Clearnet Limited (LCH.Clearnet) is set to restructure its freight clearing fees from 1 November 2010. The new fee structure is designed to reward customer loyalty, recognises the economies of scale available in clearing and ensures that the benefits of these economies are passed on to clients.
Strong volumes in the Capesize Timecharter contract have enabled a fee cut of 20% for this contract. In addition, a tiered fee structure in which increased volumes result in discounts of up to 40%, will also be introduced for all contracts.
LCH.Clearnet is also investing in its market leading freight clearing service, for the first time enabling straight though processing (STP) in these markets. Furthermore, the ongoing introduction of new complementary asset classes, such as iron ore and container swaps, facilitates access to LCH.Clearnet’s large pool of open interest, maximising margining efficiencies for clearing members.
Isabella Kurek-Smith, Director, Head of Freight and Energy Markets at LCH.Clearnet said: “This move demonstrates our commitment to the freight market. We recognise that our market leading position is due to the loyalty of our clients and our new fee structure is designed to ensure we reward this. Our quasi utility model enables us to deliver market leading services with sustainable cost effective fees and to pass the benefits of market growth back to the users. In addition, clients will benefit significantly from the enhanced operational efficiencies of STP.”