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Company Circular No:

LCH.Clearnet Ltd Circular No 3343

Service Circular No:Nodal Circular No 19
Date:24 September 2013
To:All Nodal Clearing Members

Nodal Exchange FCM Transition

Over the last several weeks LCH.Clearnet Limited (“LCH.Clearnet”) and Nodal Exchange LLC (“Nodal”) have been in regular communication with those Nodal Clearing Members that currently clear client business. Nodal’s pending designation as a Contract Market will require, from the date of designation, that all Nodal clients clear through a Futures Commission Merchant (“FCM”) rather than under the existing General Clearing Member (“GCM”) structure. Further to our communications and preparations, attached is a timeline of the expected activities for the upcoming transition. Clearing members will be informed of any changes to this timeline should they arise. Please click here for more details.

Please note that in connection with the transition:

  1. All existing Nodal Contracts entered into by GCMs will be closed out via trades input by Nodal.
  2. The pre-funding of the client segregated accounts by the FCMs on the date of designation will be deemed by LCH.Clearnet as an acceptance from those FCMs of the mirror client positions that will be opened on their behalf via trades input by Nodal.
  3. All clearing members are responsible for communicating with their clients and for providing them with all necessary information in connection with the transition.
If you have any questions regarding the transition activities, the contents of this circular or require any additional information contact Randi Abernethy at randi.abernethy@lchclearnet.com or at + 44 (0) 20 7426 7034.