| Market: | All |
| Products: | Cash |
| Date: | 28 December 2007 |
What's new on the Cash Market further to the implementation of MiFID?
NYSE Euronext Decimalisation Project on Cash Markets (4 decimal positions for trade prices): First Go-Live 28 January 2008
The "Decimalisation Project" will be implemented by NYSE Euronext on the cash markets. It consists in extending the quotation prices from two to four decimal positions on all cash markets as follows:
As from 28 January 2008, the prices of some securities listed on the Belgian and Portuguese cash markets will be quoted on four decimal positions maximum instead of two. Please find below the principles that will be applied to the prices by NYSE Euronext:
- 2 decimal positions if the price is greater than or equal to €10
- 3 decimal positions if the price is less than €10 and greater than or equal to €0.25
- 4 decimal positions if the price is less than €0.25
As from 7 April 2008, the same rule will be applied on the French cash market.
As from 2 June 2008, the same principle will be applied on the Dutch cash market.
LCH.Clearnet SA would like to draw your attention to the fact that there is no direct impact for its Clearing Members on the cash market. However, some impacts have been identified on the Paris, Brussels and Amsterdam derivatives market (please refer to the attached IF071228_2 or to the dedicated section on www.lchclearnet.com)
Members' Testing
Testing sessions will not be organised for the Decimalisation Project.
Harmonisation of amounts calculation on Paris: 7 April 2008
As mentioned during the last General Members Meeting in October, LCH.Clearnet SA will harmonise the amounts calculation in its clearing system in order to round up the amounts on the Paris market (instead of truncated amounts) as is already the case on the other segments.
The production launch will occur on 7 April 2008, at the same time as the "Decimalisation Project".
Members' Testing
A free tests session will be organised on the Paris segment as from 14 January 2008. The list of securities and COE to be tested in EUA (External User Acceptance) is still under review. You will receive additional information on this subject in the near future.
Enrichment of the Cash Data Referential: 28 January 2008
The Cash Data Referential - 2nd vacation (morning vacation) and the Cash Data Referential - 1st vacation (evening vacation) will be enriched with some new possible values on the 100th position (Code for broad instrument category). The current possible values are the following:
A: Stock
O: Bond
D: Other
As from 28 January 2008, the following possible values will be added:
W: Warrant
T: Tracker
For further information, please contact your LCH.Clearnet SA product implementation manager:
Dorothée Fresneau: +33 (0) 1 70 37 66 05 – dorothee.fresneau@lchclearnet.com
or
your local relationship manager.
Customer and Market Management LCH.Clearnet SA