Current Status

The Exchange continues with Phases 3 & 4 of its data reconciliation process (see the attachment to Stock Exchange Notice N44/08, issued on 19 December 2008).   With regards to Member Firms the Exchange has nearly completed Phase 4. The Exchange has started to issue initial determinations to non member firm counterparties as part of Phase 3.  Further information on the status of non members is included on the Non Members section of the Lehman’s default pages.  This also includes a request for any additional data to be supplied to the Exchange by Friday 6^th August 2010.

Phase 1 - Declaration

• Declare Default
• Fix Hammer Prices
• Stop Settlement
• Request Data

Phase 2 - Data Collection and Reconcilation of on-Exchange market contracts

• LSE trade report data collection
• EUI data collection
• Euroclear Bank data collection
• DTCC data collection
• Defaulter's data collection
• Member firm counterparties data collection
• Non member firm counterparties data collection
• Conduct reconciliation

Phase 3 - Consultation on Initial Determination

• Issue initial determination emails and data extracts to counterparties & defaulter
• Opportunity for counterparties and defaulter to provide further evidence in support of submissions 

Phase 4 - Assessment of Further Evidence, Confirmation of Net Amount Certificates ("NACs")

• Assess any further evidence received from counterparties and defaulter and reach final determination
• Confirm net amounts and issue NACs to member firms and non member firm counterparties