LCH.Clearnet repots healthy growth in its 2011 results

LCH.Clearnet Group Limited (LCH.Clearnet) today announces its results for the year ended 31

December 2011.

Financial highlights

• Underlying net revenues up 16% to €387.2 million (2010: €335.0 million)
• Underlying operating profit up 81% to €106.9 million (2010: €58.9 million)
• Clearing income up 16%
• Net investment income up 21%
• Strong volume growth across all key business areas
• Tier 1 capital ratio of 17.3%
• Expansion of multi asset offering - FX ready to launch and CDS service to be enhanced
• in 2012

Operational highlights

• Appointment of new CEO and investment in senior talent
• Implementation of a transformation plan to position the Group for further growth in a changing regulatory and competitive environment
• Development of a single infrastructure across group to eliminate costly duplication
• Successful resolution of MF Global default (closed market positions with a combined notional value of over €14.7 billion); no recourse to Default Fund

Commenting on performance Ian Axe, Chief Executive, said: “We had a successful year in which underlying revenues were up 16% and underlying operating profit was up substantially by 81%. This is testimony to the strong growth in our core exchange clearing business as well as our fast growing OTC business."

LCH.Clearnet is the leading independent Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term group, serving major international exchanges and platforms, as well as a range of OTC markets. It clears a broad range of asset classes including: securities, exchange traded derivatives, commodities, energy, freight, interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, CDS and euro and sterling denominated bonds and repos; and works closely with market participants and exchanges to identify and develop clearing services for new asset classes.

LCH.Clearnet is preparing to launch the much awaited ForexClear service and submitted its self-certification document to the CFTC on November 4th, 2011.

LCH will offer the service on nine currency pairs for interbank trades in currency options.