New Issuer in the Acceptable Margin Collateral List

From November 1, 2011, bonds issued in EUR by the Kreditanstalt für Wiederaufbau (KfW) will be accepted by LCH.Clearnet Limited (LCH.Clearnet) for the purposes of margin collateral.

This addition to acceptable margin collateral will be subject to the following criteria:

• Continuing explicit and unconditional guarantee provided by the Federal Republic of Germany.
• The application per clearing member of a concentration limit, set at the lower of 20% of total margin requirement, excluding variation margin, or EUR 500million.
• A further concentration limit of 10% of the total amount outstanding on any acceptable ISIN applied at a clearing member level.

• A managed ISIN list requiring appropriate nominal size and sufficient market price quotes for each issue, all as determined by the Risk Management department of LCH.Clearnet.

Haircuts for KfW securities will initially be set in accordance with the table below and will then be subject to ongoing review.

For further details of acceptable margin collateral please see the following link, which will be updated to reflect the addition of KfW securities from November 1 www.lchclearnet.com/risk_management/ltd/acceptable_collateral.asp

Or contact:

Christopher Jones
Executive Director, Head of Risk Management