|Central Costs Charged by C&CCC|
One-off: The charge is determined on a cost-recovery basis, taking into account the costs that the company and all other members expect to incur in admitting the member into the clearing system.
Any specific legal fees incurred by the company in assessing the prospective member are paid by that member.
(C&CCC Operating Costs’ Recovery)
Ongoing: The Cheque and Credit Clearing Company recovers its operating costs (staff and premises) from Members through the Annual Call.
The Annual Call for 2016 is £5m. It is allocated pro-rata based on clearing volumes i.e. the volume of paper items sent to and received by a Member in all the clearings in which it participates.
There is a minimum annual charge of 2% of the total charge. The minimum call is currently £100,000 per annum.
|Central Payment System Services provided by C&CCC||
The IBDE (Interbank Data Exchange) is the dedicated secure network, provided by C&CCC through a commercial supplier, over which the cheque data files are transmitted between Members.
Members are charged:
Ongoing annual costs are allocated on a usage basis i.e. on the equipment and lines used. A Member is able to defray some of these costs by entering into a partnership arrangement with another Member.
|The Unpaids Courier Service is a dedicated courier service, through a commercial supplier, for the collection and delivery of unpaid sterling cheques to Members of the C&CCC and to members of the Belfast Bankers’ Clearing Company.
Members are charged:
Ongoing, an annual charge for each collection point and for each delivery point. If a single site is used for both collection and delivery, it is still counted as two sites so there will be two costs to recover.
|Members’ Own Additional Costs|
Outsourced Processing Costs: Members bear their own cheque processing costs (out-clearing and in-clearing), which is usually undertaken by outsourced cheque processors through commercial arrangements.
Set-up costs and ongoing annual charges for these commercial arrangements are outside our sphere of knowledge. Cheque processing services are not provided by C&CCC.
|Liquidity Funding and Collateral Requirements||
Liquidity Funding and Collateralisation Agreement: This is a legally-binding, loss-sharing agreement to ensure Committed Liquidity and Collateral Requirements that settlement can complete in the event of a Member defaulting on its obligations to other Members of the Payment System. All Members are required to commit liquidity for use under the agreement and to lodge collateral based upon an agreed formula related to the risk each brings to the Payment System.
The value of liquidity commitments and collateral portfolios ranges from several tens of millions of pounds sterling to several hundreds of millions.
|Resourcing of Committees||Members appoint a Director to the Board of the C&CCC and resource representation on various committees to run the clearing company, which is the vehicle for making collective decisions affecting the clearings.|