| Originating department: | Commercial Services |
| Company Circular No: | LCH.Clearnet Ltd Circular No: 2163 |
| Service Circular No: | LCH EnClear No: 176 |
| Date: | 11 July 2007 |
| To: | All LCH EnClear Clearing Members |
Launch of new Handysize Timecharter route in the LCH.Clearnet OTC Freight Forward Agreement (FFA) Clearing Service
Members are advised that LCH.Clearnet will be adding a new timecharter index contract to its Freight Clearing Service - the Baltic Exchange Handysize, Average 6 routes. The launch is planned for 3 August 2007.
The contract specification is similar to that of the other 3 timecharter routes which are already offered, ie CTC, PTC and STC (please see product description below).
The LCH.Clearnet registration fee for the Handysize timecharter route will be $5/lot.
The contract code in ECS will be HTC.
All Clearing Members already active on the FFA service will be automatically granted access to the new Handysize contract. If you do not wish to have access to the Handysize contract, please let me know prior to launch.
Another circular will be sent out just prior to the launch confirming the launch date.
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
Freight and Energy Markets
Commercial Services
| Description | HTC (HandysizeTC Avg 6 routes) |
| Lot size | 1 day |
| Currency | US $ |
| Pricing | US $ per day |
| Minimum tick | US $ 0.0001 to account for final settlement |
| Fixed Price | The traded price or the previous day’s settlement price as supplied end of day by the Baltic Exchange |
| Floating Price | In respect of daily settlement, the floating price will be the end of day price as supplied by the Baltic Exchange, In respect of final settlement, the floating price will be the product of the arithmetic mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month |
| Last Trading Day | At 17:00 (UK) hours on last business day of each month within the contract seriesException – December contracts will expire on the 24th December, or previous business day, where the 24th December is a non working day |
| Contract Series | Front 1 or 2 months (remaining from expired front quarter) Front 4 Quarters, Front 3 Calendar Years. |
| Final Payment Date | Day proceeding the last business day of expiry month |
| Business Days | UK business days |