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Company Circular No:

LCH.Clearnet Limited Circular No 3380

Date:26 November 2013
To:All LCH.Clearnet Ltd FCM SwapClear, ForexClear and EnClear Members

FCM Return of Unallocated Excess and FCM Buffer - Ltd

The purpose of this circular is to inform FCM Clearing Members of some important changes to the process for the return of Unallocated Excess and FCM Buffer.

Section 4.7 of the LCH.Clearnet Ltd (LCH.Clearnet) FCM Procedures currently states that requests for the return of Unallocated Excess or FCM Buffer by an FCM Clearing Member must be accompanied by instructions as to the amount requested to be returned and whether such requested return relates to Unallocated Excess or FCM Buffer.

LCH.Clearnet notes that several such requests have been submitted to it for such return of excess amounts, without specifying whether such return is in respect of Unallocated Excess or FCM Buffer.

With effect from 2 December 2013, all such requests will be treated as requests for the returned of Unallocated Excess, unless accompanied by instructions to the contrary. Once the Unallocated Excess has been exhausted, any remaining amount will be met from FCM Buffer.

If you have any questions, please do not hesitate to contact Collateral Operations on collateral.ops.uk@lchclearnet.com, or by telephone at +44 20 7426 7505.