Market:	All
Products:	All
Date:	20 December 2006

Further Fees Invoicing Changes and related Implementation Plan

This Info Flash provides an overview of the forthcoming changes to be introduced in January 2007 with regard to the members’ invoicing improvements. This development is within the framework of the ongoing programme of tariff review initiated by LCH.Clearnet group in 2006.

Please note that additional reports mentioned hereafter are to be circulated with effect from early February 2007.

Changes that apply to all activities and all segments

New treasury report - / Invoicing cash call details:

A new report named “ Document d’appel de fonds Facturation en EUR / Invoicing cash call document in EUR” will provide members with a breakdown of the monthly cash call by invoices.
This report will be provided on the day of the effective cash debit, along with others treasury reports and via the current procedure in place (i.e. certified access points/CCW)
The first report is due to be sent early February 2007. For further information, please refer to the prototype attached in the documentation section.

Changes that apply to the cash activity all market segments involved

In the follow-up of the announcement of the reductions in clearing fees on trades executed on Euronext cash markets, Members are kindly reminded that the extra volume discount will apply as of the 01 January 2007 as follows:

Based on SA’s cash effective daily posting volumes (all clearing segments, all members put together), LCH.Clearnet SA will apply a 20% extra discount on clearing fees for postings exceeding a volume threshold. For the first half of 2007, this threshold is set at 740,000 postings per day. Such discount will apply to each clearing member as detailed in the following example:
For a given market volume of 900,000 postings on a specific day (all SA Cash clearing segments, all members put together), we use the example of a given clearing member that should pay €5,000 in clearing fees (excluding transaction fees) before the application of the extra volume discount. Market volume for this day being superior to the threshold, the extra discount will apply on volumes exceeding 740,000:
- In this specific case, this would apply on 160,000 postings (900,000-740,000), accounting for 17.8% of the daily volumes.
- Within this specific example, this clearing member will benefit from an extra discount of: €5,000 x 17.8% x (20%) = €177,8
- Effective clearing fees for this clearing member would consequently become:
  €5,000 - €177,8 = €4 822,20 resulting in a 4% decrease compared to the basic fee
  grid

New report – Cash Discount :

In order to ease audit trail, members are advised that LCH.Clearnet will provide them with a new report named “Cash Discount” that gives the relevant information for explaining on a daily basis the extra volume discount applied.
This report will be sent via post mail between the fifth and the tenth of the following month. The first report is due to be sent early February 2007.
For further information, please refer to the prototype attached in the documentation section.

In the follow-up of the announcement of the new fee grid for the clearing fees on trades executed on cash markets, those members using the flat file service for cash fees reporting need to take into account the following improvements as of the 01 January 2007:

Flat file reporting cash fees changes subsequent to the new cash fee grid :

This monthly file is sent upon Members’ request on CAP/MAP and CCW on the 5th business day following the invoiced month, consequently the dissemination of the new version of the flat file is expected early February 2007.

Each of the records CFTD¹, CFTT², and CFTO³ are modified as follow :

Previous clearing fees produced by instrument and by execution type are now combined in one sole fee category corresponding to the new fee type CLRFC and
named “Clearing fees Stocks and Bonds FR “

Cash Exchange fees are now detailed separately by market segments as follows:

The Schedule record will contain the following new values :

Market segment	Fee Schedule ID	Fee Schedule Label
Euronext Paris	9596	Transaction fee on behalf of Euronext - FR
Euronext Brussels	9597	Transaction fee on behalf of Euronext - BE
Euronext Lisbon	9598	Transaction fee on behalf of Euronext - PT
Euronext Amsterdam	9599	Transaction fee on behalf of Euronext - NL

The Fee type record will contain the following new values :

Market segment	Fee type	Fee type label
Euronext Paris	EUFRC	Tr. fee on behalf of €next FR
Euronext Brussels	EUBEC	Tr. fee on behalf of €next BE
Euronext Lisbon	EUPTC	Tr. fee on behalf of €next PT
Euronext Amsterdam	EUNLC	Tr. fee on behalf of €next NL

Please, be aware that the extra volume discount information will not be provided
in this version of the flat file. The relevant amendments will be implemented in Q1
2007 only. Implementation date will be communicated in due course.