The European Market Infrastructure Regulation (EMIR)1 entered into force on 16 August 2012. This sets out certain information that we are required to provide to our clients under EMIR where we clear derivatives for them through an EU central counterparty that has been reauthorised under EMIR (CCP). References to "we" or "us" on this webpage are to Credit Suisse Securities (Europe) Limited2 (CSSEL) in relation to clearing services provided by CSSEL, to Credit Suisse International (CSI) in relation to clearing services provided by CSI and to Credit Suisse Securities (USA) LLC2 (CSSU) in relation to clearing services provided by CSSU. Note that the contents of this webpage apply only where you are the direct client of Credit Suisse in our capacity as clearing member of the CCP concerned.
CCP Client Account Structures
Under EMIR, where we are providing services to you that involve us clearing derivatives through a CCP, 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
In relation to these matters, please see:
- the CSSEL and CSI Clearing Member Disclosure in relation to clearing services provided by CSSEL and CSI, and
- the CSSU Clearing Member Disclosure in relation to clearing services provided by CSSU.
CSSU as a registered FCM must comply with the provisions of the U.S. Commodity Exchange Act ("CEA") and the CFTC's 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
To enable us to comply with our obligations under EMIR1, 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 provide to clients; and
- the costs associated with each account type that we offer to clients in relation to those services
Unless otherwise provided, terms used on this webpage have the meanings given to them in the Credit Suisse Clearing Member Disclosures, as amended.
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.
OTC Derivatives Pricing
The table below sets out the Fees we charge to clients in relation to clearing OTC Derivatives through CCPs.
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. In particular (but without limiting the generality of the foregoing), in relation to the Credit Suisse Individual Segregated Account Maintenance Fee (as defined below), the overall costs and operational implications of different individual segregated account models are still being developed in the industry and so may be relatively susceptible to change in the near future. We will disclose any such changes in accordance with our obligations under EMIR.
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:
i) The client’s overall relationship with Credit Suisse
ii) The volume of transactions that we clear for the client
iii) The complexity of our operational arrangements with the client and the extent to which they are automated and
iv) 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 (ii) and (iii) (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/lme-clear/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.
1Regulation (EU) N0 648/2012 on OTC derivatives, central counterparties and trade repositories.
2 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. 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").
3 Or the equivalent in any other applicable currency, as determined by us at the applicable time