Introduction of Clearing for ICE Futures ECX Carbon Financial Instrument Options Contract

Introduction

Further to ICE Futures Circular 06/123 dated 25 September 2006 we provide below information about the clearing of the ICE Futures ECX Carbon Financial Instrument Options contract.

Launch Information

The ICE Futures ECX Carbon Financial Instrument Options Contract will be launched on Friday, 13 October 2006.

TRS/CPS Contract File for ICE Futures

The ICE TRS/CPS system has been upgraded to include details of the new contracts. PC Gateway users are reminded that they will need to download a new Contracts File (CONTRACT.DAT) for the ICE Futures exchange before downloading any trade data for that day. If you have any questions with regard to this please contact the ICE Help Desk 020 7488 5100 (London).

Clearing Procedures

These contracts will be processed by the Clearing and Processing System (CPS) in the same way as existing ICE Futures contracts.

London SPAN Parameters

The contract will be margined using London SPAN. The London SPAN Parameters are available on LCH.Clearnet Ltd website under the ‘Data Downloads’ section.

PPS and Banking Procedures

Standard Clearing House PPS and banking procedures will apply to this contract. If you have any queries regarding PPS arrangements please contact Siobhan White on +44 (0)20 7426 7044.

Fees

LCH.Clearnet Registration fee will be the same as for Futures contracts, namely, €2.00 per lot per side. The Option Exercise fee will be €2.00 per lot exercised or assigned. Fees will be included in the usual month end Fee invoices and collected through PPS in the normal way on the payment date.

The Clearing House Rulebook

Amendments and additions to the Clearing House Rulebook (General Regulations, Default Rules Settlement Finality Regulations and Procedures) for these contracts will be available on LCH.Clearnet website in due course, under the section ‘Rulebook’, under sub-heading 'Recent and Forthcoming Rulebook Changes'.

Further Information

If you have any questions or would like further information please contact one of the following:

Yours sincerely

Richard Heyman
Director, Exchange & Commodity Derivatives