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LCH.Clearnet announces its first trades in its new cleared freight options service

London, 12 February 2008

LCH.Clearnet celebrated its successful launch of its Dry Freight Options clearing service with the first trades cleared on Friday 8 February. 360 lots of Panamax timecharter options traded between 2 major customers in the freight market, further expanding LCH.Clearnet’s established and recognised service for the FFA swaps market. This keenly priced Options clearing service will allow market counterparties to offset their cleared option positions against their underlying cleared swaps positions, thus further optimising their risk management exposure. The routes initially covered will be the three main dry timecharter routes: Panamax, Capesize and Supramax.

David Abzatz, Division Director of Macquarie commented "Macquarie is delighted to have been involved in the first dry freight option transaction cleared via LCH.Clearnet. As a result of extending the already successful swap clearing platform into the options spectrum, we expect volumes to continue to increase in this rapidly growing area of freight derivatives."

Guy Thurston, FFA Options Broker at FIS said: “FIS were very happy to act as broker for the first ever LCH.Clearnet cleared Options trade, which was between two of the largest options players Macquarie and Bunge. We welcome the arrival of LCH.Clearnet Options clearing and the benefits that it will bring to the development of the Freight Options market. ”

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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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