EquityClear service extension to include BATS Europe

Dear Member,

LCH.Clearnet is pleased to announce that it is to further extend its EquityClear® service, to include trades executed on the BATS Europe trading platform. The service, which is expected to commence from early September will initially clear a range of UK & Swiss securities.

BATS Europe, a European multilateral trading facility (MTF), is owned by BATS Global Markets, the third largest securities exchange in the world. Currently, BATS Europe supports trading in the most liquid securities across Europe.

LCH.Clearnet will mandate netting for UK and European securities, where a settlement agent will be used. Members or their settlement agents will be required to input matching settlement instructions in the local CSD of the security. Swiss securities will settle in SIS under Power of Attorney.

Through its EquityClear® service, clearing members will benefit from margin offsets and collateral efficiencies from centralised clearing.  Also members will benefit from reduced cost with increased volumes through the member specific incremental tariff.

This service extension further highlights the ability of LCH.Clearnet to increase its market coverage, whilst minimising operational change and reducing associated costs to its members.

Should you wishi to participate in member testing scheduled to start on 17 August 2009 for 2 weeks, or if you require further information please contact Ian Mackenzie on Tel: 020 7426 7265 ian.mackenzie@lchclearnet.com

Yours sincerely

Wayne Eagle, Director, LCH.Clearnet EquityClear®