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Company Circular No:

LCH.Clearnet Ltd Circular No 3143

Service Circular No:ForexClear Circular No 001
Date:26 April 2012
To:All ForexClear Clearing Members

ForexClear Member Circular

The Rules of LCH.Clearnet Limited (“LCH.Clearnet”), a Recognised Clearing House regulated by the Financial Services Authority (“FSA”) and a Derivatives Clearing Organization registered with the Commodity Futures Trading Commission (“CFTC” or “Commission”), will be amended1 to reflect changes introduced by LCH.Clearnet resulting from CFTC Regulations with effect from 7 May 2012.

LCH.Clearnet will update the Rules and Regulations to reflect that LCH.Clearnet’s participation requirements shall set forth capital requirements that are based on objective, transparent, and commonly accepted standards that appropriately match capital to risk. Capital requirements shall be scalable to the risks posed by Clearing Members. Additionally, LCH.Clearnet shall not set a minimum capital requirement of more than USD 50 million for any person that seeks to become a Clearing Member in order to clear swaps.

The ForexClear Default Management Process will be included within the LCH.Clearnet rulebook rather than being set out in a private agreement and will also include new incentives and default management mechanisms.

The changes to the Rules and Regulations of LCH.Clearnet will take effect on 7 May 2012. A detailed description of the amendments of the Rules and Regulations of LCH.Clearnet’s ForexClear Service can be found under Amendments to LCH.Clearnet Limited’s Rules and Regulations to Reflect Changes to Comply with Incoming CFTC Regulations

Clearing Members are encouraged to make themselves familiar with the rule amendments coming into effect on 7 May 2012.

Any questions concerning this Member Circular should be directed to the Membership Team at LCH.Clearnet

Tel +44 207 426 7949

E-mail membership@lchclearnet.com

1 Subject to final regulatory approval