EquityClear Fee Reductions

Dear Member

LCH.Clearnet Ltd is constantly reviewing its services to its members and as part of an ongoing initiative we would like to advise you of further fee reductions associated with the EquityClear service.

Having introduced an innovative member related tariff structure in July 2007, whereby members benefit from a simplified tariff that incentivises growth, LCH.Clearnet Ltd has consulted with its members and the feedback has resulted in LCH.Clearnet Ltd amending the structure to add further simplicity and transparency whilst reducing costs.

From 1 January 2008 LCH.Clearnet Ltd will remove the Annual Banding Fee that is applied across all reduced tariff Bands. This will remove all the upfront payments made by members to gain the appropriate clearing tariff. It will also assist members by removing the analysis required to predict which Band would best suit their needs.

The existing flat per trade fee applied to a member’s monthly volume will remain.  However, LCH.Clearnet Ltd will reduce the virt-x per trade fee to the level of the London Stock Exchange fee, to create a single harmonised clearing fee. 

This new harmonised tariff not only applies to our existing markets of virt-x and the London Stock Exchange but will also apply to new markets that become added to LCH.Clearnet Ltd’s equity services. 

The single flat per trade fee is designed to offer maximum tariff transparency and allow members to easily calculate their costs using one single and simple calculation.

The members tariff will be applied depending on their average daily volume over a month and invoiced monthly in arrears as today.

Please use the following link to access details around the new EquityClear tariff. Also a calculator has been made available to members for modelling purposes. http://www.lchclearnet.com/tariffs/ltd/transactions/equityclear.asp

If you require further information relating to the tariff changes or the EquityClear service please contact Ian Mackenzie, Customer Management on Tel: 020 7426 7265 or email: ian.mackenzie@lchclearnet.com

Yours Faithfully,

Wayne Eagle, Director EquityClear