Lehman Brothers International (Europe) Default
Below you will find some information that can be used by member firms in their queries in relation to the default of Lehman Brothers International (Europe) Limited ("Lehmans") which was declared at 11:00 on Monday 15 September 2008. The Exchange will continue to update this information.
All Stock Exchange Notices issued in relation to the Lehmans' default are available from the downloads at the bottom of this page.
Administrator information - PricewaterhouseCoopers LLP ("PWC")
Here is a link to PWC's website which provides information in relation to the administration of Lehman Brothers International (Europe).
The Exchange confirms that Lehmans has not effected any on-Exchange transactions on 15 September, including any transactions on the International Order Book.
Default Procedures
The operation of the Exchange's default procedures, in accordance with the provisions of the companies act 1989, is designed to produce a net sum calculation of the liabilities owed to and by the defaulter with respect to each of its counterparties to unsettled non CCP on-exchange trades. Under the rules of the London Stock Exchange the Exchange will determine the net amount payable between Lehman and each of its counterparties in respect of unsettled on Exchange trades as at the time of default (11:00 hrs on Monday 15 September 2008).
In accordance with paragraph D121 of the rules, this net amount will be certified by the Exchange and may be proved as a debt by the defaulter or counterparty as applicable. Following this certification, it is for the defaulter and it's counterparties to organise the associated payments. The Exchange is not authorised to engage in the payment process and its role in the default will cease once it certifies the net amount payable.
Current Status
This page will be updated as the default process develops.
Rules
Download the rules of the London Stock Exchange.
Ceasing of settlement
The Exchange's guidance in relation to settlement.
Member Firms
The Exchange's guidance in relation to member firms.
Non - Members
The Exchange's guidance in relation to non-member firms and their custodians.
Lending Arrangements
The Exchange's guidance on relation to Lending Arrangements.
Hammer Prices
The Exchange's guidance in relation to hammer prices.
Contact details
Default Official - Nick Bayley +44 20 7797 4214 (STX 34214) defaultofficial@londonstockexchange.com
N29/09 - Lehman Brothers International (Europe) – In Default - Hammer Prices Updated – Version 11 Dated 12 June 2009