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Company Circular No:LCH.Clearnet Ltd Circular No 3099
Service Circular No:LCH EnClear No 353
Date:28 February 2012
To:All LCH.Clearnet EnClear Clearing Members

Launch of an additional two container freight contracts in the LCH.Clearnet EnClear OTC clearing service

LCH.Clearnet will be introducing two new contracts to its OTC Container Freight clearing service on Monday 5 March 2012. The two new contracts, which represent the routes Los Angeles to Shanghai and Rotterdam to Shanghai, will be cash settled against the World Container Index (WCI).  All Clearing Members already active in the EnClear Freight service will automatically have access to the new contracts.

  1. The LCH.Clearnet registration fee for both contracts will be $3/lot. There will be no cash settlement fees
  2. The contract codes will be:
          a.   Rotterdam - Shanghai    WRS
          b.   Los Angeles - Shanghai   WLS
  3. Details of margin rates can be found on the latest EnClear margin circular

Contract specification

WCI Containers

World Container Index (WCI) cash settled container freight swap agreements based on the following routes:

 Rotterdam - Shanghai   (WRS)
 Los Angeles - Shanghai (WLS)

Lot size1 FEU 40ft container
CurrencyUS Dollars
PricingUS $ per FEU
Minim tickUS $ 0.01 to account for final settlement
Fixed price

The traded price or the previous day’s settlement price as supplied end of day by WCI, or any other such source as LCH.Clearnet may determine

Floating price

In respect of daily settlement, the floating price will be the end of day price as supplied WCI, or any other such source as LCH.Clearnet may determine.

In respect of final settlement, the floating price will be the mean of the relevant prices for the contract route as published by WCI each Thursday during the contract month.

Contract seriesFront 3 months, front quarter + following 3 quarters, 1 whole calendar year (out to a maximum of 23 months)
Last trading day

Last publication day of the relevant index in the contract month i.e. the last UK business Thursday of every month.

Where the last Thursday of the month is not a UK business day, the last trading day will be the previous publication day (Thursday).

DeliveryCash settled monthly against the arithmetic average of all the indices in the contract month
Final paymentThe first UK business day following the last trading day
Business daysUK business days for the purpose of trade registration, confirmation, Index publication and final payment

If you have any questions relating to this circular, please do not hesitate to contact me on [email protected] or +44 20 7426 7460.

Yours sincerely

Isabella Kurek-Smith
Director, Head of Energy and Freight Markets