| Originating department: | Risk Management |
| Company Circular No: | LCH.Clearnet Ltd Circular No 2083 |
| Service Circular No: | RepoClear 111 |
| Date: | 27 October 2006 |
| To: | All RepoClear Members |
Margin Rate Changes
LCH.Clearnet Ltd has revised the London SPAN parameters for RepoClear. These changes will be made effective from the close of business on Monday 6 November 2006 and will be reflected in margin calls on Tuesday 7 November 2006.
Following analysis of trading activity and the nature of GBP denominated bonds in the RepoClear Eligible Bond List, LCH.Clearnet Ltd has decided to revise the GBP Bond Maturity Buckets to better reflect the risk profile of GBP bonds and to ensure margins are proportionate to that risk. Details of the new maturity buckets can be found in the margin rate spreadsheet.
Resulting changes to margin rates are detailed in bold and italic type in Attachments A, B, C, D, E, F, G and H of this circular.
This circular supersedes LCH.Clearnet Ltd Circular No 2059; RepoClear/109 dated 01 August 2006.
Details of the LCH.Clearnet Ltd RepoClear Circular can be found on the LCH.Clearnet website (www.lchclearnet.com) under Risk Management > Ltd > Margin rate circulars > RepoClear.
Members seeking further information please contact:
LCH.Clearnet Ltd Risk Operations 020 7426 7520
Andrew White
Director, Risk Policy






