| Originating department: | Commercial Services |
| Company Circular No: | LCH.Clearnet Ltd Circular No: 2186 |
| Date: | 14 September 2007 |
| To: | All LCH.Clearnet Limited Members |
LCH.Clearnet Limited USD PPS deadline Changes
Dear Members,
LCH.Clearnet Limited has been reviewing its risk management processes and its procedures for PPS arrangements after the current operational deadline of 6:30pm London time. The conclusion of the review is that LCH.Clearnet Limited is now considering extending the deadline for USD PPS from the current deadline of 6.30pm to 9.00pm London time.
This change would allow LCH.Clearnet to more actively risk manage those markets that are open into the London evening and US trading hours. The potential consequence of an extension to the US PPS arrangements would be for members active in open markets to receive PPS calls should activity or price movements be significant. We would stress that members active in markets that are closed during these later hours would not be impacted by this potential change.
We are aware that this change may impact members in different ways and we would like to understand the implications for individual members. We would request that members provide their comments back to the contact below by close of business 26 September. We would intend to review the comments and, if necessary, arrange further workshops to understand the issues involved.
If you have any question with regards to this, please contact
Martin West – martin.west@lchclearnet.com - +(44) 207 7426 7089
Yours sincerely,
Richard Heyman
Customer Management