EuroCCP Signs Clearing and Settlement Code of Conduct

London, 10 April 2008 - EuroCCP announced today that it had signed the Code of Conduct for clearing and settlement during a meeting at the European Commission in Brussels.

The Code was signed formally by Diana Chan, chief executive officer of EuroCCP, in keeping with a commitment made by The Depository Trust & Clearing Corporation (DTCC), EuroCCP’s parent organisation, when it was selected to provide a clearing and settlement solution for Turquoise, a group of global investment banks creating a pan-European trading platform. By signing the voluntary Code of Conduct, EuroCCP agrees to enhance transparency and increase competition in the post-trade sector.

EuroCCP received approval two weeks ago as a Recognised Clearing House (RCH) from the U.K.’s Financial Services Authority (FSA). That approval allows EuroCCP to begin clearing and settling trades for Turquoise and other multilateral trading platforms and exchanges in Europe.

“We believe EuroCCP can set a new standard in helping to reduce the costs of clearing and settlement in Europe,” said Chan. “We are already in discussions with a number of trading platforms who are looking for an alternative low-cost clearing and settlement provider.”

As a result of EuroCCP being approved by the FSA as a Recognised Clearing House and EuroCCP signing the Code of Conduct, the firm has published its fee schedule on its Web site. The fees are expected to be significantly less than other clearing organisations in Europe.

Chan pointed out that in addition to low fees for clearing and settlement, EuroCCP will provide added processing efficiencies. It is envisaged that financial firms that trade on any multilateral trading facility or exchange that uses EuroCCP can benefit by having their trade obligations netted down or reduced into one net settlement position each day per security, thereby requiring only one settlement for all trades on all platforms. Moreover, there will be one collateral amount to secure open positions across all platforms.

EuroCCP’s “at-cost” business model means it will return any excess money beyond that required to fund the business to its participant firms in the form of rebates or discounts. The organisation is also user-governed, with a 13-member board made up of participant firm representatives, three independent board members and two management representatives. The participant organisations include Deutsche Bank, Goldman Sachs, Merrill Lynch, Citi, UBS, BNP Paribas, Credit Suisse, and Morgan Stanley. The three independent directors are Edouard-François de Lencquesaing (former head of transaction banking and IT at Crédit Commercial de France), Iain Saville (former Chief Executive of CRESTCo Ltd.) and Derek Ross (former Partner at Deloitte U.K.).

The Code of Conduct essentially requires stock exchanges, central securities depositories and central counterparties (such as EuroCCP) to open up competition in clearing and settlement. Key among the voluntary provisions are that prices charged by clearing and settlement organisations be publicly disclosed and made comparable. The code also establishes ground rules for access and interoperability between market infrastructures, building on the provisions under the Markets in Financial Instruments Directive (MiFID). MiFID fosters cross-border securities market integration by removing barriers to competition in the trading of securities. Finally, the code requires that services be made available to users on an unbundled basis.

“We are charging very low fees,” Chan said. “In addition, one of the key differences between us and some other clearing organisations in Europe is that we give back to clearing participants the full amount of interest earned on cash collateral, because of our ‘at-cost’ business model. For some firms, the spread they lose on the interest on cash collateral is a very significant hidden cost.”

The fee schedule for EuroCCP is available at the company’s web site at http://www.euroccp.co.uk/docs/EuroCCP_Fee_Schedule_Mar2008.pdf.

About EuroCCP

European Central Counterparty Limited (EuroCCP), headquartered in London, is a subsidiary of The Depository Trust & Clearing Corporation (DTCC). It was formed to provide clearing and settlement services for multilateral trading facilities and exchanges across Europe. It will initially clear equity trades in 14 countries and in seven different currencies.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives.

n addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties who market these products. DTCC’s depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 110 other countries and territories, valued at $40 trillion. Last year, DTCC settled more than $1.8 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.