Circular issued pursuant to Rule 5 of LCH.Clearnet Limited’s Default Rules

1. All Contracts with a Clearing Member with registered offices in Switzerland and incorporated under the laws of Switzerland ("Swiss Clearing Member") shall automatically terminate in the following events ("Automatic Early Termination Event"):

   a) The declaration of bankruptcy (Konkurseröffnung/ouverture de la faillite) over the Swiss Clearing Member according to the Swiss Federal Act on Forced Debt Collection and Bankruptcy dated 11 April 1889 as amended ("DCBA"); or

   b) The order of a Swiss Clearing Member's insolvent liquidation (Bankenkonkurs / faillite bancaire) according to the Swiss Banking Act dated 8 November 1934 as amended ("BankA").

2. Save as set out in 1 (a) or 1 (b) above, no other event which is capable of constituting an event of default shall be an event to which Automatic Early Termination is required to apply and in particular and without limitation:

   a) The order of protective measures (Schutzmassnahmen / mesures protectrices) and the commencement of restoration proceedings (Sanierungsverfahren / procédure d’assainissement) according to the BankA;

   b) The grant of a debt moratorium (Nachlassstundung / sursis concordataire) according to the DCBA or the grant of a corporate law moratorium (Konkursaufschub / ajournement de la faillite) according to the Swiss Code of Obligations dated 30 March 1911 as amended. 
   

If you have any questions please contact the legal team on +44 (0)207 426 7983.

Yours sincerely

 
Iona Levine
General Counsel
LCH.Clearnet Group Limited