Harmonisation of French debt denomination

UNT / FMT migration in production

LCH.Clearnet is pleased to confirm the launch of the French debt denomination harmonisation project on Monday 24 October 2011.

As a reminder, the project aims to:

• Harmonise the denomination used for clearing and settlement of French debt on NYSE Euronext’s regulated bond markets from units (UNT) to facial amount (FMT);
• In parallel the reform of the accrued coupons will be extended from 3 to 7 decimals for French debt.

In scope

The migration will start on Friday 21 October 2011 in the evening. All the products in the scope of the migration, static data, stocks, flows and fails will be converted in « one-shot » from UNT to FMT in the settlement related files (SIF and BIF).

In the batch session, clients’ files and messages will be available in two phases:

• As from close of business until migration: Trade Leg Reconciliation Files, PR3 files as well as Margin Account Results files and Span parameter file will be available following the regular schedule with a denomination in UNT.
• After migration: SIF and BIF will be available once the migration/conversion will be completed with a denomination in either:
  • UNT: for positions settled on Friday 21 October 2011;
  • FMT: for the positions which Intended Settlement Date is Monday 24 October 2011 or after.

As from Monday 24 October 2011, all clients’ messages and files will be available for French debt with a denomination in FMT and the accrued interest with 7 decimals.

Out of scope

We remind you that Bonds with the following characteristics will not be included in the scope of the change in denomination to FMT:

• Bonds with a decimalized (other than 0.10 and 0.25) or atypical nominal;
• Bonds with a decreasing nominal.

As a consequence and as of Monday 24 October 2011, these bonds will no longer be available for clearing through LCH.Clearnet. To ensure that the settlement processes takes place before the migration, these bonds will be removed from the NYSE Euronext regulated markets trading engine as from Thursday 13 October 2011 trading session.

The trading of these bonds will remain available off-market through NYSE Euronext’s Trade Confirmation System (TCS). For further details please refer to the NYSE Euronext Info Flash sent on Wednesday 15 June 2011.

The list of securities concerned is available on our website.

http://www.lchclearnet.com/Images/out%20of%20scope%20UNT_FMTx_tcm6-58769.pdf

Launch Support

A specific client’s support will be set up during the launch to support clients in their migration on Friday 21 October 2011 evening and on Saturday 22 October 2011 between 08.00 until 12.00 CET. Support will be performed by your Product Implementation Manager: Jean-Bertrand Lesparre

For further information, please contact:

Your LCH.Clearnet SA Product Implementation manager:

Jean-Bertrand Lesparre: +33 (0) 1 70 37 66 46 – [email protected]
or
your account manager.

Customer and Market Management LCH.Clearnet SA

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