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Originating department:Commercial Services
Company Circular No:LCH.Clearnet Ltd Circular No 2819
Service Circular No:LCH EnClear No 331
Date:28 March 2011
To:All LCH.Clearnet EnClear Clearing Members

Introduction of a new Fertilizer Contract in the LCH EnClear OTC Service

LCH.Clearnet will be introducing a new Fob Egypt Urea Fertilizer contract into its EnClear clearing service on Friday 1 April 2011.

Clearing Members already active in the fertilizer service will automatically be granted access to the new contract. 

The contract code in ECS will be UNE and the LCH.Clearnet registration fee will be $25 per lot.

If you have any questions please do not hesitate to contact me on +44 20 7426 7460 or isabella.kurek-smith@lchclearnet.com
Yours sincerely

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

Contract Specification 

DescriptionFertilizer swap contract cash settled against:
UREA- Fob Egypt (UNE)
Lot size500mt
CurrencyUS Dollars
Minimum tick SizeUS $0.0001
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 Days  UK Business Days