Update

Exchange & Clearing House Issues

	Transfer of ICE Futures Clearing from LCH.Clearnet to ICE Clear (Europe)

The FOA has responded to the Office of Fair Trading's consultation on the application from ICE Clear Europe for Recognised Clearing House status. This resulted in a further questionnaire from the OFT to which the FOA has responded.

On the 13 th November the FOA Board met Jeff Sprecher, CEO of ICE Inc., to discuss the Exchange's proposals. This meeting was part of the information gathering process the FOA is conducting in order to ultimately facilitate a decision by the FOA Board as it whether it will support the planned migration of ICE Futures open interest to ICE Clear Europe.

	LIFFE - options exercise/assignment issues

A meeting was held between FOA members and the Exchange to discuss how the existing exercise/assignment process and systems could be improved to allow members to better manage the associated operational risk. The meeting concluded that the Exchange's systems needed to display associated exercise/assignment data in a more user friendly manner; the functionality associated with exercise and abandonment should be improved; the Exchange should create greater awareness amongst their members as to the applicable standard settings (e.g auto exercise) for each contract; and, the Exchange should provide more training in this area for members' staff. The FOA is currently discussing delivery timescales with the Exchange.