LSE Trade flow change effective Monday 30 June 2014

We are pleased to announce that from Monday 30 June 2014, The London Stock Exchange (LSE) will change the way it routes its SETS and SETSqx gross executions onward for settlement.

Currently all gross executions are routed directly to Euroclear UK and Ireland (EUI) for netting and settlement. Form the above date, all gross executions will be routed to the CCPs for immediate risk management and if necessary settlement netting purposes. The executions will either be routed as gross, or netted prior to the settlement messages being sent to EUI.

This change to the trade flow enables market participants to reduce their post trade costs and bring efficiencies to the UK market.

Clearing Members should advise us of any changes to the clearing and or settlement arrangements that currently exist if:

• Members use LCH to clear MTF UK business
• Members want LCH to facilitate netting
• Members are changing any other details of their existing set-up as a result of migration.

We would like to remind clearing members and to advise your settlement agents that:

From trade date Monday 30 June, therefore, settlement date Thursday 3 July, all UK settlements in EUI will be against LCH01 regardless of which venue the trade originates. However, all open positions due for settlement in our EUI settlement account ARMAY, will remain until fully settled. Thereafter, ARMAY will no longer be active.

Settling participants should advise EUI of their settlement preferences in their GUI

Also please note our:

Central Sponsor ID

SETS Only: - LCHLGBKB (TSO = S)

Other: - LCHLGB2E (TSO = 9)

SAT sending participant

LCHLGB2E

From the above date all buy-ins will be processed through LCH01 and should be instructed and matched accordingly.

If you require additional information please contact Ian Mackenzie, Manager, EquityClear; Tel: +44 (0) 20 7426 7265 Email: [email protected]

Yours sincerely
Roland Chai, Head of Equities, LCH.Clearnet Ltd