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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2682
 Service Circular No: LCH EnClear No 302
Date:14 September 2010
To:All LCH.Clearnet EnClear Clearing Members

Introduction of a new Fertilizer Contract in the LCH.Clearnet OTC Service: Freight Division

 LCH.Clearnet is pleased to be introducing the DAP New Orleans fertilizer contract into its EnClear clearing service on Monday 20 September 2010.

 Clearing Members already active in the fertilizer service will automatically be granted access to the new contract. 
 The contract code in ECS will be DNO and the LCH.Clearnet registration fee will be $25 per lot.
 If you have any questions please do not hesitate to contact Holly Shaw on +44 20 7426 7027 or Holly.Shaw@lchclearnet.com.

Yours sincerely

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

Contract Specification

DescriptionFertilizer swap contracts cash settled against:
DAP – New Orleans (DNO)
Lot size500st
CurrencyUS Dollars
Minimum tick SizeUS $0.01
Fixed priceThe traded price or the previous day’s settlement price as supplied end of day by FIS brokers
Floating priceIn respect of daily settlement, the floating price will be the end of day price as supplied by FIS brokers
In respect of final settlement, the floating price will be the arithmetic average of the relevant weekly indices for that contract as supplied by FIS for that month
Contract seriesFront 6 months, 4 quarters
ExpiryLast publication day of the relevant index in the contract month ie the last business Thursday of every month
Exception – December contracts will expire on the penultimate Thursday, as there is no publication of an index in the week prior to New Year
Where the last Thursday of the month is a non-business day, the expiry day will be the first business day preceding.
SettlementThe first business day following the expiry day
DeliveryCash settled monthly against the average of all the relevant indices for that contract during the month
Business DaysUK Business Days