Removal of Bank-Issued CDs from the acceptable collateral list

With immediate effect, LCH.Clearnet Ltd will no longer accept Certificates of Deposit (CDs) unless they are backed by the UK or other AAA rated government.

Any member who has non-government backed CDs lodged as collateral at present will be given one month from the date of this circular to provide an alternative form of cover.

All CDs issued under the UK Government Credit Guarantee Scheme are acceptable as collateral, details of which can be found at http://www.dmo.gov.uk/index.aspx?page=CGS/CGSLiabilities

Any CDs issued in GBP, EUR or USD and backed under equivalent schemes by other AAA rated governments will also be accepted.

Please contact the following for confirmation of eligibility or any further information.

Jenny Cronin – Treasury Operations
Tel:  +44 (20) 7426 7095 
E-mail:  jenny.cronin@lchclearnet.com

or

Lucy Hammond – Risk Management
Tel: +44 (20) 7426 7173
E-mail: lucy.hammond@lchclearnet.com.