Client Offering EMIR and MiFID II Disclosures

Overview

The European Market Infrastructure Regulation¹ ("EMIR") and both the Markets in Financial Instruments Directive II² and Regulation³ (collectively "MiFID II")set out certain information that we are required to provide to our clients under EMIR and MiFID II where we clear derivatives for them, either directly or indirectly through an EU central counterparty that has been reauthorised under EMIR ("CCP"). References to "we" or "us" on this webpage are to the following entities:

• Credit Suisse International⁴ ("CSI") in relation to clearing services provided by CSI,
• Credit Suisse Securities (Europe) Limited⁵ ("CSSEL") in relation to clearing services provided by CSSEL,
• Credit Suisse Securities (USA) LLC⁶ ("CSSU") in relation to clearing services provided by CSSU,
• Credit Suisse AG (Sydney Branch)⁷ ("CSAGSB") in relation to clearing services provided by CSAGSB, and
• Credit Suisse Bank (Europe), S.A.⁸  ("CSEB") in relation to clearing services provided by CSEB.

CCP Client Account Structures

Under EMIR and MiFID II, where we are providing services to you that involve us clearing derivatives through a CCP, acting in the capacity of a clearing member, we must:

• offer you a choice of an individual client account or an omnibus client account; 
• publicly disclose the levels of protections and costs associated with different levels of segregation; and 
• describe the main legal implications of different levels of segregation
• Additionally, where we provide indirect clearing services (as set out in the Indirect Clearing RTS⁹), in our capacity as Clearing Member we must:
  
  • offer you a choice of a basic omnibus indirect client account and a gross omnibus indirect client account; and
  • publicly disclose the levels of protection and costs associated with different levels of segregation; and
  • describe the main legal implications of different levels of segregation; and
  • publicly disclose the general terms and conditions under which we provide such services

Under EMIR and MiFID II, where we are providing services to you that involve us clearing derivatives indirectly as a client of a clearing member through a CCP, we must:

• offer you a choice of a basic omnibus indirect client account and a gross omnibus indirect client account
• disclose the details of the different levels of segregation
• describe the risk associated with each type of account
• publicly disclose the general terms and conditions under which we provide such services

In relation to these matters, please see:

• the CSSEL and CSI Clearing Member Disclosure (PDF) in relation to clearing services provided by CSSEL and CSI in their capacity as Clearing Members, and
• the CSSEL and CSI Direct Client Disclosure (PDF) in relation to indirect clearing services provided by CSSEL and CSI in their capacity as clients of a Clearing Member, and
• the CSSU Clearing Member Disclosure (PDF) in relation to Direct clearing services provided by CSSU in its capacity as a Clearing Member, and
• the CSSU Clearing Member Disclosure (PDF) in relation to Indirect clearing services provided by CSSU in its capacity as a Clearing Member, and
• the CSSU Direct Client Disclosure (PDF) in relation to indirect clearing services provided by CSSU in its capacity as a client of a Clearing Member, and
• the CSAGSB Direct Client Disclosure (PDF) in relation to indirect clearing services provided by CSAGSB in its capacity as a client of a Clearing Member, and
• the CSEB Clearing Member Disclosure (PDF) in relation to clearing services provided by CSEB in its capacity as Clearing Member, and
• the CSEB Direct Client Disclosure (PDF) in relation to indirect clearing services provided by CSEB in its capacity as a client of a Clearing Member.

CSSU as a registered Futures Commission Merchant ("FCM") must comply with the provisions of the U.S. Commodity Exchange Act ("CEA") and the U.S. Commodity Futures Trading Commission's ("CFTC") rules governing the protection of customer assets and positions. Under the CFTC's regulatory regime, FCM clearing members may provide only omnibus client segregation.

The CSSU Clearing Member Disclosure contains further information regarding the level of protection under the CFTC regulatory regime. 

Client Clearing Fees

Introduction

To enable us to comply with our obligations under EMIR and MiFID II, this webpage provides the following details to you where we are providing services that involve us clearing through a CCP:

• the prices and fees associated with the clearing services provided to clients and indirect clients; and 
• the costs associated with each account type that we offer to clients and indirect clients in relation to those services

(together, "Fees")

Unless otherwise provided, terms used on this webpage have the meanings given to them in the Credit Suisse Clearing Member Disclosures, as amended from time to time. 

Our Approach to Pricing

Cost-plus model: We use a "cost plus" model for pricing our Exchange Traded Derivatives ("ETD") and Over-The-Counter ("OTC") Derivatives Clearing Services for clients. This means that we charge to clients the CCP Costs (as defined in the tables below) that are charged to us, and then show any additional Fees that we charge to clients as separate items over and above the CCP Costs.

Exchange Traded Derivatives Pricing

The table below sets out the Fees we charge to clients in relation to clearing ETDs through CCPs.

^{a – Or the equivalent in any other applicable currency, as determined by us at the applicable time}

OTC Derivatives Pricing

The table below sets out the Fees we charge to clients in relation to clearing OTC Derivatives through CCPs. 

^{a – Or the equivalent in any other applicable currency, as determined by us at the applicable time}

Changes in our fees: We may at any time change the Fees (other than the CCP Costs) (the Credit Suisse Clearing Fees) we describe in this document. We will disclose any such changes in accordance with our obligations under EMIR and MiFID II.

Changes in CCP Costs: In addition, CCPs may from time to time change the CCP Costs. The disclosure of any such changes is the responsibility of the CCP.

Costs not covered in this disclosure: Our prices, fees and costs for other services that we may provide to clients in relation to ETDs and OTC Derivatives (for example, execution, collateral transformation or funding) are outside the scope of this disclosure.

Factors that may affect our Fees: The level of Credit Suisse Clearing Fees we charge to a client will depend on:

1. The client's overall relationship with Credit Suisse
2. The volume of transactions that we clear for the client
3. The complexity of our operational arrangements with the client and the extent to which they are automated and
4. Any third party fees incurred by us in connection with clearing ETDs or OTC Derivatives transactions on behalf of the client (other than CCP Costs)

(together, the "Fee Determination Factors").

Notwithstanding this, the Credit Suisse Clearing Fees we charge to a client will not exceed the maximum such fees published by us in this disclosure from time to time.

Impact of transaction volume and operational complexity on our Fees: The diagram below is a non-exhaustive illustration of the factors we take into account when determining the impact of Fee Determination Factor (2) and (3) (relating to volume of transactions and complexity of operational arrangements) on the Credit Suisse Clearing Fees for a client.

In relation to the client’s portfolio, the presence of the factors in the right-hand column will potentially result in Fee Determination Factor having a greater reductive effect on the Credit Suisse Clearing Fees, while presence of the factors in the left-hand column will potentially result in Fee Determination Factor having a less or no reductive effect:

Reassessment of Fee Determination Factors

We may from time to time reassess the Fee Determination Factors in relation to a client. This may result in a change in the fees that we charge. We may apply the Fee Determination Factors differently to the different Credit Suisse Clearing Fees listed above.

Rebates and Discounts

Where a client clears through an individual segregated account with us (but not otherwise), we will pass through any rebate or discount that we receive from a CCP and which is referable to the corresponding individual client segregated account we hold with the CCP.

Additional CCP Information

As a clearing member of LME Clear Limited ("LME Clear") we are required to direct our clients to the LME Clear Rulebook and in particular the Mandatory CCP Provisions of LME Clear which are available on its website at: https://www.lme.com/en/Clearing/Rules-and-regulations/Client-Information and to the extent that we clear LME transactions for you, then then you will be subject to those Mandatory CCP Provisions.

• ¹ Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories
• ² Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast)
• ³ Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) no 648/2012
• ⁴ Credit Suisse International is an unlimited company incorporated in England and authorised as a bank by the United Kingdom Prudential Regulation Authority and regulated by the Financial Conduct Authority.
• ⁵ Credit Suisse Securities (Europe) Limited is a private limited company incorporated in England and authorised by the United Kingdom Prudential Regulation Authority and regulated by the Financial Conduct Authority.
• ⁶ Credit Suisse Securities (USA) LLC is a limited liability company organized under the laws of the State of Delaware and is registered with the U.S. Commodity Futures Trading Commission ("CFTC") as a futures commission merchant ("FCM").
• ⁷ Credit Suisse AG, Sydney Branch is an Australian branch of Credit Suisse AG, it is regulated by the Australian Prudential Regulatory Authority (APRA) and the Australian Securities & Investment Commission (ASIC) and holds an Australian Financial Services Licence No. 226896. It is also, an ASX 24 Market Participant and ASX Clear (Futures) Pty Ltd Clearing Participant. . Credit Suisse AG is a public limited company incorporated in Switzerland and authorised as a Bank/Swiss securities dealer under the supervision of the Swiss Financial Market Supervisory Authority FINMA. Credit Suisse Group entities, other than Credit Suisse AG, Sydney Branch, are not authorised deposit-taking institutions for the purposes of the Banking Act 1959 (Cth.), and their obligations do not represent deposits or other liabilities of Credit Suisse AG, Sydney Branch. Credit Suisse AG, Sydney Branch does not guarantee or otherwise provide assurance in respect of the obligations of Credit Suisse.
• ⁸ Credit Suisse Bank (Europe), S.A. is a company incorporated in Spain, registered with the Commercial Registry of Madrid with tax identification number A-79192258, under volume 4194, section 8, sheet M-69786, page 198, whose registered office is at calle Ayala 42, 3 Planta-B, Madrid, 28001, Spain, and which is a credit institution, authorised by the European Central Bank, supervised and regulated by the Bank of Spain for the provision of banking services with reference number 0243, and regulated by the Comisión Nacional del Mercado de Valores ("CNMV"), for the provision of investment services and activities.
• ⁹ Commission Delegated Regulation (EU) 2017/2154 of 22 September 2017 supplementing Regulation (EU) 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements; and Commission Delegated Regulation (EU) 2017/2155 of 22 September 2017 amending Delegated Regulation (EU) No 149/2013 with regard to regulatory technical standards on indirect clearing arrangements.