Acceptable Collateral - Ltd

1. Members should refer to LCH.Clearnet Limited's General Regulations, Default Rules and Procedures, or telephone LCH.Clearnet Limited Treasury Operations on +44 (0)20 7426 7124 for information relating to the acceptance of collateral.
2. Before any securities are accepted, members must complete a legal form of charge, for further information telephone LCH.Clearnet Limited Membership on +44 (0)20 7426 7627.
3. LCH.Clearnet Limited imposes overall limits on CDs and performance bonds.
4. Certain taxation restrictions and requirements may apply to securities.
5. Any collateral may be used to cover any margin liability with the following restrictions:
   
   1. US Dollar securities held in New York may not cover equity options (including index options) margins, and EquityClear margins;
6. To be acceptable, government securities must be issued in the home country of the issuing government and be denominated in its domestic currency (a definition which, for Euroland countries, includes both their legacy currencies and the euro).
7. The list refers to collateral acceptable to LCH.Clearnet Limited as margin cover for all business cleared. Certain European regulators have agreed that OTC instruments registered with LCH.Clearnet Limited should be exempt (following Directive 2000/12/EC of 20 March 2000) from credit equivalent amount add-on. Any such exemption applies to LCH.Clearnet Limited members only where initial margin requirements are met with Cash or the Government Securities acceptable by LCH.Clearnet Limited. Members are responsible for ensuring that they comply fully with regulatory requirements in this respect.
8. Charge and Credits
   
   1. Cash - Interest is paid on cash at the London Deposit Rate (LDR). This is accrued daily and paid on a monthly basis to your PPS account. LDR can be viewed daily on TRS at $BRT.
      
   2. Performance Bonds - LCH.Clearnet Limited charges 10 basis points (annualised) for utilisation. This is accrued daily and charged on a monthly basis to your PPS account.
      
   3. Government Securities and CDs - LCH.Clearnet Limited charges 10 basis points for utilisation. This is accrued daily and charged on a monthly basis to your PPS account.