EquityClear service extension to include Chi-X Europe

Dear Member,

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

Chi-X Europe, a European multilateral trading facility (MTF), offers trading in the component stocks of 18 indices across 13 major European markets for over 900 stocks, including Exchange Traded Funds and Exchange Traded Commodities.

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 members wish 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®