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Originating department:Risk Management
Company Circular No:LCH.Clearnet Ltd Circular No 2749
Service Circular No:RepoClear: 156
Date:09 November 2010
To:All RepoClear Clearing Members

Amendment of RepoClear €GC Baskets to exclude Ireland

Following the lowering by Fitch Ratings of its sovereign credit ratings on Republic of Ireland debt to BBB+ on Thursday 9 December 2010, RepoClear participants are advised that with effect from the 10 December 2010 Irish Government bonds will be no longer be eligible for delivery in any of the RepoClear €GC Baskets.

Until today’s downgrade Ireland had been eligible for the single A €GC Basket.

This is in line with LCH.Clearnet Ltd’s Regulations*, which state that while the criteria which define each of the eligible €GC baskets remains fixed, the countries’ debt meeting the defined criteria for inclusion in each basket may change from time to time. Where the combined credit rating of a country that falls within the definition of Euro zone countries changes, LCH.Clearnet Ltd will add or remove that country’s debt from each of the relevant eligible €GC baskets based on the new combined credit rating of that country.


Further Information

If you have any questions, or would like further information, please contact one of the following:


General RepoClear Nick Maggs+ 44 (0) 20 7426 7442
Risk Department Tom Chapman+ 44 (0) 20 7426 6338
Business Operations Mark Baker+ 44 (0) 20 7426 7217