EquityClear® service extension to include Equiduct

Dear Member,

LCH.Clearnet Ltd is pleased to announce that it is extending its EquityClear® service to include trades executed on the Equiduct trading platform. The target live date is November 2008, initially clearing a range of UK securities.

LCH.Clearnet Ltd will be offering clearing services to Equiduct through its EquityClear service, whereby Clearing Members will benefit from margin offsets and collateral efficiencies from centralised clearing. Also members will benefit from reduced clearing cost with increased volumes.

All trades will be routed directly to LCH.Clearnet Ltd from the trading platform using the new EquityClear routing technology then forwarded to Euroclear UK & Ireland (EUI) for settlement.

Members will have the choice to settle on a gross or net basis using EUI functionality.

This service extension further highlights LCH.Clearnet Ltd ability to increase its market coverage whilst minimising operational change to its members.

Project details will be made available in due course.

Members requiring further information should contact Ian Mackenzie on 020 7426 7265 ian.mackenzie@lchclearnet.com.

Yours sincerely
Wayne Eagle, Director, LCH.Clearnet EquityClear®