Originating department:	Customer and Market Management
Company Circular No:	LCH.Clearnet Ltd Circular No 2117
Service Circular No:	Euronext.liffe No 613
Date:	12 February 2007
To:	All Euronext.liffe Clearing Members

Introduction of Raw Sugar contract

Introduction

Further to LIFFE Notice 2841 dated 2 February 2007 we provide below information about the introduction of the Raw Sugar Futures and Options contracts.

Launch Information

The Raw Sugar Futures and Options contracts will be made available for trading on and from Tuesday 20 February 2007.

London SPAN Parameters

The contract will be margined using London SPAN. The London SPAN Parameters will be available on LCH.Clearnet website under the ‘Risk Management’ section. LCH.Clearnet will issue a Margin circular detailing the margin parameters and offsets with White Sugar.

Fees

LCH.Clearnet will not be charging their standard clearing fee (£0.03) for any Raw Sugar transactions from their launch on 20 February 2007 until the end of August 2007. (Note the fee holiday has been extended from 17th August until the end of August). Option Exercise and Option Assignment Fees and Delivery Fees will be charged as below from launch.

Fees charged in respect of the Raw Sugar contracts will be as follows:

• Standard clearing fee will be 3 pence per lot per side
• Option Exercise £0.075
• Option Assignment £0.075
• Delivery Fee £5.00

Note these fees are in line with the fees charged for White Sugar contracts.

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.

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 ‘Rules & Regulations / Ltd’, under sub-heading ‘Recent and Forthcoming Rulebook Changes”.

Delivery Procedures

Procedures for Raw Sugar futures deliveries will be available on the LCH.Clearnet Ltd website (www.lchclearnet.com/limited) in due course, under the section ‘Rulebook’, under sub-heading Section 5 – Commodity Deliveries.

Further Information

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

General	John Gammer	+44 (0)20 7426 7384
Risk	John Kelly	+44 (0)20 7426 7052
Operational	Kevin Watts	+44 (0)20 7426 7699
Membership and Customer Training	Jane Cleaves	+44 (0)20 7426 7078

Yours sincerely

John Gammer
Senior Manager
Exchange and Commodity Derivatives