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Company Circular No:

LCH.Clearnet Limited Circular No 3338

Service Circular No:EquityClear/Turquoise Derivatives 242
Date:18 September 2013
To:All EquityClear & Derivative members

Turquoise Derivatives to London Stock Exchange plc

Dear Member,

Following the announcement on 3 July that the London Stock Exchange plc (“LSE plc”), a Recognised Investment Exchange (RIE), is to acquire Turquoise Derivatives this notice provides further information for Clearing Members.

It was confirmed in Turquoise Market Notice 2013/066 that from Monday 30 September 2013, trading in derivatives will be conducted on the London Stock Exchange Derivatives Market. 

General Regulations 74-87 and Section 2F of the Procedures will continue to apply to the clearing of transactions executed on the LSE Derivatives Market.  The only change to the LCH.Clearnet rulebook will be in the definition of the market.

Members should ensure that they use the MIC of XLOD and the OPOL Code of XLON for all trading conducted on the London Stock Exchange Derivatives Market.

LCH.Clearnet currently report Turquoise Derivative trades (as a result of a delivery) within the EquityClear member reports with the trade place identifier as TRQD. From 30 September, the trade place identifier will be XLOD. This will be reported in reports EREP0005 & EREP0006

Clearing Members or their settlement agents should be aware that currently Turquoise Derivative deliveries of UK ISINs settling in Euroclear UK & Ireland are instructed with a TSO identifier of “Q”. From 30 September, for stamp duty reasons, LSE Derivative Market deliveries of UK ISINs settling in Euroclear UK & Ireland should be instructed with a TSO of “S”.

Should you have any questions please do not hesitate to contact us.

Marc Huglin
Executive Director, Commodities and Listed Derivatives