| Originating department: | Risk Management |
| Company Circular No: | LCH.Clearnet Ltd Circular No 2129 |
| Service Circular No: | LCH EnClear 165 |
| Date: | 13 March 2007 |
| To: | All LCH EnClear Clearing Members |
Margin Rate Changes for EnClear Contracts
As part of LCH Clearnet’s ongoing drive to improve our service to members, the following contracts will now benefit from tiered margining with regards to both inter-month spread charges and inter-commodity offsets, Henry Hub, SP15 and PJM West US Power contracts. This will bring substantial margin reductions where appropriate.
LCH.Clearnet Ltd has set SPAN parameters, as highlighted in bold and italic in the attached document. These changes will take place with effect from close of business Tuesday 20th March 2007 and will be reflected in margin calls made on Wednesday 21st March 2007. This circular supersedes circular LCH.Clearnet/ 2127; LCH EnClear / 164 dated 07 March 2007.
Changes have been made to ICE OTC contracts HNG, SP15 and PJM West.
Details of the current London SPAN Parameters, for all contracts, can be found on the LCH.Clearnet website (www.lchclearnet.com) under Risk Management > Ltd > Margin rate circulars.
Members seeking further information please contact:
Risk Operations 020 7426 7520
Christopher Jones
Director, and Head of Risk Management