Company Circular No:	LCH.Clearnet Ltd Circular No 3405
Service Circular No:	Nodal Exchange 23
Date:	14 January 2014
To:	All Nodal Clearing Members

MARGIN RATE CHANGES

1. After a recent review of margin parameters, a couple of parameters will be updated.

   The Standard Deviation Multiplier will be updated from 4.4 to 5
   The Minimum Margin percentage will be updated from 0.25% to 0.31%

   The changes will be reflected in margin calls on 15 January 2014 – detailed in table below.

Margin Parameters (New/changed parameters in bold)
	VaR Specific Parameters			Min Margin Specific Parameters
Holding Period	Standard Deviations Multiplier	Minimum Price Denominator	Price Threshold for VaR	Minimum Margin Percentage (% of GPV*)	Price Threshold for Minimum Margin
2 days	5	2.5	2.5	0.31	2.5

* GPV – Gross Portfolio Value

2. The remaining margining parameters are kept unchanged at this time.
3. For further information please contact:
   Operations and Client Servicing - 020 7426 7520