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Company Circular No:LCH.Clearnet Ltd Circular No 3223
Date:13 November 2012
To:All SwapClear, ForexClear and EnClear clearing members

Further Amendments to the LSOC Rules Regarding the Allocation of Gains or Losses Associated with the Auction/Liquidation of Non-Porting Clients

LCH.Clearnet Limited (LCH.Clearnet) is writing to provide further information to Members of changes to LCH.Clearnet’s Rules and Regulations in relation to its implementation of CFTC regulation Part 22 (LSOC) at Sections 2A.15.6 (v), 2B.23.6 (v), 2C.1.20 (v) of the FCM Procedures and in relation to the SwapClear, ForexClear and EnClear Services respectively.

This change will not impact the operational implementation of LSOC for Members of LCH.Clearnet and will not affect LCH.Clearnet’s compliance with Part 22 of the CFTC Rules and the protection provided thereunder.

This amendment to the post default rule will alter the methodology used by LCH.Clearnet to attribute the gains or losses that may exist as a result of the liquidation of non-porting clients at auction. Click here to see the changes that have been posted to LCH.Clearnet’s website and that will come into effect on the morning of November 14, 2012. 

A formal rule change will be filed with the CFTC shortly.

If you have any questions:

For SwapClear please contact Phil Atkinson
Tel +44 20 7426 6389
Email phil.atkinson@lchclearnet.com

For ForexClear please contact Aly Wilson
Tel +44 20 7426 7059
Email alyson.wilson@lchclearnet.com 

For EnClear please contact Isabella Kurek-Smith
Tel +44 20 7426 7460
Email isabella.kurek-smith@lchclearnet.com