Transactions subject to Default rules
Transactions executed away from the Exchange's order book must be trade reported to the Exchange as in accordance with rules 3000 and 3010. In the case of a Lehman trade with a non-member counterparty, Lehman would have therefore had to trade report that transaction to the Exchange.
If a non-member counterparty had a standing instruction with Lehman that it wanted all of its transactions to be subject to the rules, or that it gave similar instructions on a trade by trade basis, then it is likely that Lehman would have reported it to the Exchange.
Where no such instructions have been agreed, then it is likely, based on the information provided by Lehman, that any trade in a EU regulated market security will have been reported by Lehman as a OTC trade and would not therefore be an Exchange transaction. In contrast, trades in AIM securities and International Order Book (IOB) securities should have been reported to the Exchange as on Exchange transactions.
Reconciliation and Net amounts
Those non-member firms who believe they may have unsettled on-Exchange transactions with Lehman should complete and return the outstanding transactions spreadsheet.
This information should be returned to the default official at
defaultofficial@londonstockexchange.com as soon as possible. Please ensure you provide full contact details, including name, address, phone and fax numbers and your Lehman client reference(s) within the spreadsheet that is submitted to the Exchange.