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LCH.Clearnet announces launch date for OTC emissions clearing

London, 25 February 2008

LCH.Clearnet is pleased to announce that it will launch OTC clearing services for Certified Emissions Reduction (CER) and EU Allowance contracts on Friday 29 February 2008.  These new cost efficient services will offer direct clearing of CER and EUA trades executed on the OTC market. 

The standardised physically delivered contracts will be settled against London Energy Brokers Association (LEBA) end-of-day prices with appropriate margin offset being granted between the two contracts. Contracts will be based on December delivery and will cover the period 2008 to 2012.

Roger Liddell, Chief Executive at LCH.Clearnet, said: “The current period of heightened market volatility only serves to highlight the importance of clearing for this significant sector of the market.  We look forward to a successful launch and continued work with the OTC broking community to further enhance this service offering in the future.”

Stewart Lloyd-Jones, Chief Executive at LEBA, added: “LEBA is delighted to work with LCH.Clearnet in the provision of cleared CER and EUA OTC contracts. This service will allow for margin offsetting between the two contracts, and we believe will provide still further momentum and opportunities for market participants in the rapidly expanding carbon markets.”

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Editors Notes

LCH.Clearnet is currently owned 67.6% by users, 17.8% by exchanges with the balance of 14.6% being held by Euroclear. Upon completion of the Euronext share buy-back programme by 2009, the Group will be owned 73.3% by users, 10.9% by exchanges and 15.8% by Euroclear.