ICCS Charges and Interest Quarterly Distribution

Do you know...
...how ICCS collects service charges? ...that ICCS pays interest to members for funds in its possession throughout the clearance process?

ICCS members earn credit interest on any funds that ICCS is holding for them during the clearance process. If ICCS receives funds after 12:00 GMT on the ICCS contract day (when ICCS takes out its currency contracts), the funds must wait to be paid until the next ICCS clearance cycle. During this time the funds earn interest and this credit interest is then paid back to the members at the end of the quarter. Interest is paid from the BSP settlement day up to, but not including, the corresponding ICCS clearance day. It should be noted that some exceptions do occur for certain countries and currencies.

The ICCS charges (i.e. country charge, bank transfer charge) are also applied on a quarterly basis. They are offset against any credit interest earned by the member over the quarter, and the positive or negative balance is then included in a specific ICCS clearance cycle approximately six weeks after the quarter’s end. Members will see it listed on the 30F report with the comment XQ07 Quarterly Distribution.

An email is sent to each member a few days before the actual clearance, advising them of the clearance number to which the quarterly charges will be applied. The email also includes the ICCS Quarterly Statement reflecting the specific details of the charges.