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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2601
 Service Circular No:EquityClear Circular No 153
Date:17 March 2010
To:All EquityClear Clearing Members

EquityClear service extension to include Centrally Cleared CFD’s

Dear Member,

LCH.Clearnet Limited is pleased to announce that it is extending its EquityClear service.  The service will now include centrally cleared Contracts for Difference (CCcfd’s) that will be registered on the Chi-X trading platform in parallel with the underlying equity.  The service will initially cover all FTSE 100 securities with a planned launch in Q3 2010, with the intention to extend the service to a pan-European range shortly after launch.

LCH.Clearnet will be the first clearing provider to offer clearing services to a combined CFD equity trade, whereby cash equity orders will be able to directly trade against CCcfds.

The service is in line with the European Commission’s aim to increase the proportion of cleared OTC contracts, and will still enable investors to access the best market price for a trade while benefiting from all the advantages that central clearing offers.  This includes reduced counterparty risk, margin offsets and collateral efficiencies.  Members will also benefit from major cost and process efficiencies and give-up functionality.

This innovative service extension further highlights LCH.Clearnet’s ability to increase its market coverage and demonstrates its unparalleled expertise when offering diverse clearing services and products to its members.

LCH.Clearnet will be contacting its members to arrange bi-lateral meetings to discuss implementation and project details.

Members requiring further information should contact Ian Mackenzie on 020 7426 7265 ian.mackenzie@lchclearnet.com


Yours sincerely
Wayne Eagle, Director, LCH.Clearnet EquityClear