Four More Leading Derivatives Houses Join OTCDerivNet To Extend Partnership With LCH SwapClear

LONDON, 14 March 2001 -- An additional four leading derivative houses announce their decision today, to join OTCDerivNet Limited (OTCDerivNet), extending the partnership with The London Clearing House Limited (LCH) to use and develop LCH SwapClear - the clearing service for interest rate derivatives.

BNP Paribas, Morgan Stanley, The Royal Bank of Scotland and UBS Warburg have joined OTCDerivNet, which was established to provide strategic direction and finance for the development of the LCH SwapClear service. This exciting development expands the OTCDerivNet board to 12 institutions, increasing both the breadth of experience of the shareholders as well as the already substantial volume represented.

OTCDerivNet was launched in October 2000 by: Bank of America, Barclays, Citibank/ Schroder Salomon Smith Barney, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Merrill Lynch and Société Générale.

A spokesperson for OTCDerivNet observed: "We are delighted with this additional participation. These four banks provide further critical mass to OTCDerivNet, and the LCH SwapClear service, thereby reinforcing the industry's drive to facilitate straight-through-processing. This expansion will further our ability to enhance the LCH SwapClear service to mitigate operational, credit and settlement risks, while allowing for a continued reduction in processing support costs and regulatory capital requirements".

David Hardy, LCH's Chief Executive said: "The addition of these four members to OTCDerivNet, provides even greater global representation for LCH SwapClear and will serve to enhance LCH's role as the market's central counterparty. This development reinforces LCH SwapClear as an integral element of the derivatives' market infrastructure. We look forward to a long-lasting relationship with this expanded and strengthened group".