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Pierre-Dominique Renard – Director, Customer & Market Management
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Fabien Defrance - Deputy Director, Risk Management
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LCH.Clearnet introduces cross-margining on commodities

Paris, 16 January 2008

LCH.Clearnet SA is pleased to announce the introduction of cross-margining between wheat and corn futures and options contracts listed on the Liffe Paris derivatives market.

During 2007, following the growth of wheat and corn prices, the price correlation observed between the two products increased substantially, allowing LCH.Clearnet SA to introduce cross margining. As a consequence, margin calls linked to positions in spreads between wheat and corn futures and options contracts will benefit from a 55% margin reduction. This decrease may be adjusted should the degree of price correlation change.

The new credit for inter-commodities spreads between wheat and corn was implemented on 15 January 2008. This is the first time LCH.Clearnet SA has introduced cross-margining on commodities. Cross-margining is already available on the strongly correlated CAC 40, BEL 20 and AEX futures and options indices.

Commenting on the initiative, Vincent Gros, General Secretary at LCH.Clearnet SA, said: “We continuously work to improve our risk management framework to reflect the evolving environment, and we are sure that our clients will appreciate our efforts to reduce the scale of their margin obligations.”

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Editors Notes

LCH.Clearnet is currently owned 67.6% by users, 17.8% by exchanges with the balance of 14.6% being held by Euroclear. Upon completion of the Euronext share buy-back programme by 2009, the Group will be owned 73.3% by users, 10.9% by exchanges and 15.8% by Euroclear.

LCH.Clearnet is committed to operating under strict principles of non-discrimination across its user base. LCH.Clearnet serves major international exchanges and platforms, equity, exchange-traded derivatives, energy, interbank interest rate swaps markets and the majority of the Euro-denominated and sterling bond and repo markets.

Markets Served

LCH.Clearnet clears a diverse range of asset classes worldwide.

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