EquityClear Announces Up To 26% Clearing Fee Cuts On London Stock Exchange And On virt-x Trades

LCH.Clearnet EquityClear® is pleased to announce reductions in clearing fees. These reductions, which reflect our determination to deliver value at competitive pricing levels, will come into effect on 1 November 2006.

The reductions announced this morning, reflecting the outstanding growth in cleared volumes, represent the first stage in an ongoing programme of tariff reduction for clearing cash equities. As with all central counterparties, marginal costs are relatively low. As a consequence, LCH.Clearnet is undertaking a comprehensive review of its tariffs generally, with a view to introducing a pricing structure which will better reflect the structure of our cost base, hence including a greater concentration on discounting fees at high levels of activity. The review is expected to be complete by the end of 2006.

From 1 November there will be a 6% reduction in clearing fees on trades executed on LSE SETS, SETSmm, and on all trades executed on virt-x. There will be a further 20% reduction on clearing fees charged on the top 20% of trades executed on LSE SETS, SETSmm and virt-x UK and Irish business. This will make an overall reduction of 26% in clearing on this top trading segment.

The table below gives precise details of the revised tariff.

Commenting on the reductions, Roger Liddell, LCH.Clearnet Group Chief Executive, said: “LCH.Clearnet is committed to driving fees downwards, and these reductions are clear evidence of our determination to set tariffs that are reasonable and competitive, whilst ensuring that we can continue to deliver high quality clearing services to this and all our other market segments. We expect to make a further announcement in the near future relating to other equity market clearing fees. Together, they will constitute an interim measure, paving the way for a fully comprehensive review to be announced at the end of the year.”