| Originating department: | Commercial Services |
| Company Circular No: | LCH.Clearnet Ltd Circular No: 2151 |
| Service Circular No: | LCH EnClear No: 171 |
| Date: | 08 June 2007 |
| To: | All LCH EnClear Clearing Members |
Fee Reductions on the Forward Freight Agreement (FFA) OTC Clearing Service
Dear Member
LCH.Clearnet would like to advise its members that it is reducing the cost of clearing FFA OTC Trades.
The changes to fees will be:
1. With effect from 1st June 2007, we will no longer be charging cash settlement fees for the FFA contracts. These have been previously charged at 50% of the underlying clearing fee for each contract.
2. Between 11 June 2007 and 28 September 2007 (the Qualifying Period), no clearing fees will be charged for backloaded, or legacy trades. Qualifying trades are existing OTC bilateral trades, which have been transacted prior to 11 June 2007, and are subsequently registered for clearing with LCH.Clearnet during the Qualifying Period.
3. All other Clearing fees for FFA contracts remain unchanged
Please see summary table below
If you have any questions please do not hesitate to contact me on +44 207 426 7460 or Isabella.kurek-smith@lchclearnet.com
Yours Sincerely
Isabella Kurek-Smith
Commercial Services
Summary Fee table
| Route | Clearing Fee | Cash settlement fee | Backloaded trade Clearing fee (11/06/07- 28/09/07) |
| STC | $7 /lot | Nil | Nil |
| PTC | $7 /lot | Nil | Nil |
| CTC | $15 /lot | Nil | Nil |
| P2A, P3A | $8 /lot | Nil | Nil |
| C4, C7 | $5/lot | Nil | Nil |
| C3 | $8 /lot | Nil | Nil |
| C5 | $4 /lot | Nil | Nil |
| TD3, TD5, TC4 | $4 /lot | Nil | Nil |
| TD7 | $2 /lot | Nil | Nil |
| TC2 | $5 /lot | Nil | Nil |
| TC5 | $6 /lot | Nil | Nil |