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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2668
 Service Circular No:LCH EnClear No 297
Date:16 August 2010
To:LCH.Clearnet EnClear Clearing Members

Addition of Dry Trip Timecharter Route P1A to LCH.Clearnet's FFA Clearing Service

LCH.Clearnet will be introducing the P1A route to its OTC Freight (FFA) clearing service on Monday 23 August 2010.

2 contracts will be launched: P1A (settlement based on the mean of the last 7 Baltic Exchange spot price assessments in the expiry month) and P1E (settlement based on the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month).

All Clearing Members already active on the FFA service will automatically have access to the new P1A and P1E contracts.

The LCH.Clearnet registration fee for the P1A and P1E contracts will be $8/lot.

Description

Cash settled freight forward contract on the following Dry Trip Timecharter Route:

P1A, P1E (Panamax Transatlantic RV)

Lot size1 day
PricingUS $ per day
Minimum tickUS $ 0.0001 to account for final settlement
Fixed priceThe traded price or the previous day's settlement price as supplied by the Baltic Exchange
Floating price

In respect of daily settlement, the floating price will be the end of day price as supplied by the Baltic Exchange.

In respect of final settlement for P1A, the floating price will be the mean of the last 7 Baltic Exchange spot price assessments in the expiry month.

In respect of final settlement for P1E, the floating price will be the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month.

Last Trading Day

At 18:00 hours UK time on last business day of each month within the contract series.

Exception December contracts will expire on the 24th December, or previous business day, where the 24th December is a non-working day.

Contract seriesFront 6 months, front 4 whole quarters
Final paymentThe first business day following the expiry day
Business daysUK business days

If you have any questions relating to this circular, please do not hesitate to contact Holly.Shaw@lchclearnet.com / +44 20 7426 7027 or Isabella.Kurek-Smith@lchclearnet.com / +44 20 7426 7460.

Yours sincerely

Isabella Kurek-Smith
Director, Head of Energy and Freight Markets
Commercial Services