Client Offering EMIR and MiFID II Disclosures

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 Credit Suisse International4 (CSI) in relation to clearing services provided by CSI, to Credit Suisse Securities (Europe) Limited5 (CSSEL) in relation to clearing services provided by CSSEL and to Credit Suisse Securities (USA) LLC6 (CSSU) in relation to clearing services provided by CSSU.

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 RTS7), 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:

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

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.

ETD pricing

Type of Fees Fees

CCP Costs

  • These are the prices, fees and costs that we have to pay to the CCP in connection with clearing ETD transactions on behalf of the client on that CCP.
You should obtain this information from the CCP

Credit Suisse Transaction Clearing Fee

  • This is the fee that we will charge to the client to clear ETD transactions on their behalf. It will not exceed the maximum amount set out opposite.
  • The level of Credit Suisse Transaction Clearing Fee will depend on the Fee Determination Factors as described below.

Maximum of €10a per lot.

Credit Suisse Individual Segregated Account Maintenance Fee

  • This is the additional fee that we will charge the client to hold its assets and positions in an individual segregated account. It will not exceed the maximum amount set out opposite.
  • We apply the Fee Determination Factors to the Credit Suisse Individual Segregated Account Maintenance Fee in the same way as we do to the Credit Suisse Transaction Clearing Fee
Maximum of €20,000a per Individual Segregated Account per month

Credit Suisse Indirect Clearing Gross Omnibus Segregated Account Maintenance Fee

  • This is the additional fee that we will charge for the indirect client to hold its assets and positions in a Gross Omnibus Segregated Account. It will not exceed the maximum amount set out opposite.
  • We apply the Fee Determination Factors to the Credit Suisse Indirect Clearing Gross Omnibus Segregated Account Maintenance Fee in the same way as we do to the Credit Suisse Transaction Clearing Fee
Maximum of €20,000a per Indirect Clearing Gross Omnibus Segregated Account per month per end client within the account

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. 

OTC pricing

Type of Fees Fees

CCP Costs

  • These are the prices, fees and costs that we have to pay to the CCP in connection with clearing OTC transactions on behalf of the client on that CCP.
You should obtain this information from the CCP

Credit Suisse Transaction Clearing Fee

  • This is the fee that we will charge to the client to clear OTC transactions on their behalf. It will not exceed the maximum amount set out opposite.
  • The level of Credit Suisse Transaction Clearing Fee will depend on the Fee Determination Factors as described below.
Maximum of the below when applicable:
a) maximum of €3,000a ticket fee and/or
b) maximum of €100 per million on notional and/or
c) maximum of 100 basis points charge on Initial Margin posted

Credit Suisse Individual Segregated Account Maintenance Fee

  • This is the additional fee that we will charge the client to hold its assets and positions in an individual segregated account. It will not exceed the maximum amount set out opposite.
  • We apply the Fee Determination Factors to the Credit Suisse Individual Segregated Account Maintenance Fee in the same way as we do to the Credit Suisse Transaction Clearing Fee
Maximum of €30,000a per Individual Segregated Account per month

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:

Fee Determination Factors

Factor Impact on Fees –Increase Impact on Fees –Decrease

Maturity of Markets

Bespoke STP

Execution Method

Voice Execution Electronic

Trading Volumes

Low High
Account Structure Individual Omnibus
Number of Accounts High Low
Collateral Process Non Cash Cash
Excess Management Frequent Infrequent
Contract Settlement Physical Delivery Cash Settlement
Client Reporting Bespoke Standard

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.