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Originating department:Risk Management
Company Circular No:LCH.Clearnet Ltd Circular No 3010
Date:20 October 2011
To:All LCH.Clearnet Members

New Issuer in the Acceptable Margin Collateral List

From November 1, 2011, bonds issued in EUR by the Kreditanstalt für Wiederaufbau (KfW) will be accepted by LCH.Clearnet Limited (LCH.Clearnet) for the purposes of margin collateral.

This addition to acceptable margin collateral will be subject to the following criteria:

Haircuts for KfW securities will initially be set in accordance with the table below and will then be subject to ongoing review.

3 business days <=1yr4.63%
> 1yr <=  3yrs5.25%
Kreditanstalt für Wiederaufbau (KfW)> 3yrs <= 7yrs6.25%
> 7yrs <= 11yrs6.63%
> 11yrs <= 30yrs10.25%

For further details of acceptable margin collateral please see the following link, which will be updated to reflect the addition of KfW securities from November 1 www.lchclearnet.com/risk_management/ltd/acceptable_collateral.asp

Or contact:

Treasury OperationsJenny CroninEmail: jenny.cronin@lchclearnet.com
Tel:    +44 (20) 7426 7095
Risk Management
Barry Gethin\Neil Jones Email: Treasury&LiquidityRisk@lchclearnet.com
Tel:    +44 (20) 7426 7098\7485

Christopher Jones
Executive Director, Head of Risk Management