Launch of Sterling GC Service

LCH.Clearnet is launching a new service called Sterling GC with effect from 14 March 2007. This service will operate within its RepoClearŪ business.

The introduction of the Sterling GC product offers Sterling money market participants the opportunity to trade Sterling on a secured basis against a basket of UK government bond collateral, in a manner that will provide significant operational efficiency benefits and enable trading liquidity to increase. The product is expected to be used primarily as a funding tool for banks active in the Sterling markets and will be of particular interest to those members who trade in large scale and that require a standardised, high integrity framework for managing Sterling exposures.

Please refer to the LCH.Clearnet website for information pertaining to the updated LCH.Clearnet Rules and Regulations and fees in relation to the new Sterling GC service.

Yours sincerely
John Burke,
Director Fixed Income

For further information regarding this circular, please contact:
Nick Maggs, Fixed Income Client Relationships,
Tel: +44 20 7426 7442
E-mail: nick.maggs@lchclearnet.com.