Bonds and Repos – Italian debt

Offsetting of failed positions

In order to decrease the number of unnecessary fails resulting from opposite failed settlement instructions, LCH.Clearnet SA will offer its Clearing Members the possibility to offset their failed positions on Italian debt from Monday 14 March, 2011.

The offsetting request can be made for failed positions of opposite directions when they meet the following criteria:

• The request is placed only when the buying position reaches Intended Settlement Date (ISD) + 10 (end of validity date) ;

• The ISD of buying positions precedes the ISDs of the selling positions by a maximum of three clearing days.

As a reminder, LCH.Clearnet creates a single net settlement instruction per ISD and ISIN.

The offsetting request shall be made by filling out an Offsetting Request Form which should be sent to LCH.Clearnet SA’s Operations Department by fax and by email, on ISD +10 (end of validity date) of the buying position before 2.30 pm CET.

LCH.Clearnet SA’s Operations Department will then, after validation, convey the request to Monte Titoli for processing before 4.00 pm CET.

The relevant Instruction III.4-7 can be found here:
http://www.lchclearnet.com/rules_and_regulations/sa/instructions.asp

Operation department contact details:

Email: [email protected]
Phone: +33 1 70 37 65 16
Fax: +33 1 70 37 65 08

The request form can be found here: Offsetting Request Form.

Customer and Market Management LCH.Clearnet SA

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