Document:

EX-10.13:

 

Exhibit 10.13

Dated:           October 2003

THE INTERNATIONAL PETROLEUM EXCHANGE OF

LONDON LIMITED

and

THE LONDON CLEARING HOUSE LIMITED

Clearing Services Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain
information in this agreement has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Contents	 	Page
	1 Definitions and Interpretation
	 	 	1	 
	2 Term
	 	 	7	 
	3 Scope of this Agreement
	 	 	7	 
	4 Fair Treatment
	 	 	10	 
	5 Relationship Management
	 	 	13	 
	6 Change Control
	 	 	13	 
	7 Information Technology and Data Protection
	 	 	15	 
	8 Responsibility of LCH
	 	 	15	 
	9 Intellectual Property Rights
	 	 	15	 
	10 Representations, Warranties, Undertakings and Indemnities
	 	 	16	 
	11 Confidentiality
	 	 	17	 
	12 Limitation of Liability
	 	 	19	 
	13 Force Majeure
	 	 	20	 
	14 Termination Events
	 	 	22	 
	15 General
	 	 	23	 
	16 Dispute Resolution
	 	 	26	 
	17 Jurisdiction
	 	 	29	 
	Schedule 1: The Services
	 	 	31	 
	Schedule 2: Service Levels
	 	 	38	 
	Schedule 3: Business Continuity Arrangements
	 	 	39	 
	Schedule 4: Fees
	 	 	41	 
	Schedule 5: Change Control
	 	 	45	 
	Schedule 6: Relationship Management
	 	 	47	 

 

 

	 	 	 	 	 
	Contents	 	Page
	Schedule 7: Benchmarking Process
	 	 	49	 
	Schedule 8: Exit Management
	 	 	52	 
	Schedule 9: IPE Dependencies
	 	 	54	 
	Schedule 10: Information Technology and Data Protection
	 	 	56	 
	Schedule 11: IPE Regulations
	 	 	58	 

 

 

This Agreement is made on           October 2003 between:

	(1)  	The International Petroleum Exchange of London Limited whose registered office is at
International House, 1 St Katharine’s Way, London E1W 1 UY (“the IPE”); and

	(2)  	The London Clearing House Limited whose registered office is at Aldgate House, 33 Aldgate
High Street, London EC3N 1 EA (“LCH”) (each a “Party” and together the “Parties”).

Recitals:

	(A)  	The IPE carries on the business of operating an Exchange for the trading and execution of
Futures and Options.

	(B)  	LCH is a Recognised Clearing House and provides central counterparty and ancillary services
to the IPE in such capacity.

	(C)  	Under an agreement dated 28 May 1988, the IPE appointed LCH as the clearing house to provide
services in relation to certain contracts traded on the IPE. The IPE and LCH now wish to amend
the terms and conditions upon which LCH provides these services.

It is agreed as follows:

	1  	Definitions and Interpretation
	 
	1.1  	The following definitions shall apply unless the context requires otherwise:
	 
	   	“Agreed Period” means the period of five years from the Olympus Completion Date or, if
shorter, the Term.
	 
	   	“Board” means the board of directors of the relevant company.
	 
	   	“Business Continuity Arrangements” means the arrangements referred to in Schedule 3
(Business Continuity Arrangements).
	 
	   	“Business Day” means Monday to Friday inclusive except for days which are English bank or
public holidays.
	 
	   	“CFTC” means the Commodity Futures Trading Commission of the United States of America
and, where applicable, any successor thereto.
	 
	   	“Change” has the meaning ascribed to that term by sub-clause 6.2.
	 
	   	“Change Control Procedure” means the procedure for agreeing amendments to this Agreement
contained in Schedule 5 (Change Control).
	 
	   	“Clearing Member” means an IPE Member who is, at the relevant time, a member of LCH
authorised by LCH to clear eligible IPE Contracts.

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	   	“Clearing Membership Agreement” means the agreement by that name as prescribed from time
to time by LCH and any authorisation given by LCH to a member to clear IPE Contracts.
	 
	   	“Client Account” means an account of a Clearing Member maintained with LCH in respect of
the Clearing Member’s transactions for segregated customers, which is designated by LCH
as a client account.
	 
	   	“Contract Rules” has the meaning ascribed to that term in the IPE Regulations.
	 
	   	“Current Contract” means any of the following contracts: IPE Brent Futures and Options
Contracts, the IPE Gas Oil Futures and Options Contracts and the IPE Natural Gas Futures
Contract, traded as such on the IPE at the date of this Agreement.
	 
	   	“Default Notice” has the meaning ascribed to it in the LCH Regulations.
	 
	   	“Energy Product” means contracts, including Options and Futures, over or in respect of
oil and oil products, coal, natural gas, electricity or any other similar products.
	 
	   	“Exchange” means a Recognised Investment Exchange or a body providing similar functions
and which is subject to equivalent standards whether in the United Kingdom or elsewhere.
	 
	   	“Exit Management Plan” has the meaning ascribed to that term in Schedule 8 (Exit
Management).
	 
	   	“Exit Phase” means the period commencing on the date a notice to terminate this Agreement
is served pursuant to Clause 14 and ending on the completion of the replacement of
services by (a) Successor Operator(s).
	 
	   	“Fees” means the charges made by LCH to Clearing Members in respect of the Services, as
subject to Schedule 4 (Fees).
	 
	   	“Force Majeure Event” has the meaning ascribed to that term in sub-clause 13.1.
	 
	   	“FSA” means the Financial Services Authority and, where applicable, any successor
thereto.
	 
	   	“FSA Rules” means the relevant rules made by FSA from time to time.
	 
	   	“FSMA” means the Financial Services and Markets Act 2000.
	 
	   	“Futures” means any futures or contracts for differences etc. contract as defined by
Articles 84 and 85 of the Financial Services and Markets Act 2000 (Regulated Activities)
Order 2001 admitted for trading on the IPE.
	 
	   	“Good Industry Practice” means, in relation to any undertaking and any circumstances, the
exercise of the degree of skill, care, prudence and foresight and application of
standards which could then reasonably be expected of a skilled and

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	   	experienced person engaged in providing services of the nature of the relevant Services.
	 
	   	“Group” has the same meaning as in the Companies Act 1985 and “Group Companies” means
persons (whether or not companies) who are (or, if they were companies, would be) in the
same Group.
	 
	   	“Intellectual Property Rights” means trade marks, service marks, trade names, logos,
get-up, patents, inventions, registered and unregistered design rights, copyrights,
database rights, domain names and all other similar proprietary rights in the United
Kingdom (including know-how) including, where such rights are obtained or enhanced by
registration, any registration of such rights and applications and rights to apply for
such registrations.
	 
	   	“IPE Contract” means any and all types of Futures or Options on the terms of an Exchange
contract which may now, or at any future time, be tradable under the IPE Regulations and
which, under the IPE Regulations and the LCH Regulations, are permitted or required to be
presented for registration and clearing to LCH.
	 
	   	“IPE Contract Manager” means the person(s) nominated by the IPE to manage the
relationship between the Parties under this Agreement.
	 
	   	“IPE Dependency” means those activities and/or matters set out in Schedule 9 (IPE
Dependencies), being activities and/or matters upon which LCH’s ability to perform some
or all of the Services is dependent.
	 
	   	“IPE Market” means a market operating under the IPE Regulations.
	 
	   	“IPE Materials” means: (1) any Material (including, for the avoidance of doubt, the
Current Contracts and any New Contracts) provided or made available by or on behalf of
the IPE or any member of the IPE Group to LCH under this Agreement or relating to the
Services, whether or not developed by LCH; and (2) any Material developed by LCH or a
Group Company of LCH for the IPE where that development has been commissioned and paid
for by the IPE.
	 
	   	“IPE Member” means a member of the IPE as defined in the IPE Regulations.
	 
	   	“IPE Regulations” means the regulations, rules and Contract Rules of the IPE as from time
to time in force and/or any arrangements, directions and provisions made thereunder, as
the context may require.
	 
	   	“IPE Regulators” means FSA and any other relevant regulator in another jurisdiction.
	 
	   	“IPE System” means the IT System owned or used by the IPE in connection with the
Services.
	 
	   	“IT System” means:

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	 	(i)  	computer equipment (including, without limitation, computer processors,
computer terminals, printers, modems, input devices, output devices, other computer
peripherals, communications equipment and consumables); and
	 
	 	(ii)  	computer programs (including, without limitation, scripts, templates,
operating systems, application programs, macros, batch codes, databases, and
associated specifications, plans, methodologies, reports, processes, designs and
know-how).

	   	“Law” means relevant laws and licences, statutory instruments, rules and regulations
having the force of law imposed by a governmental or other regulatory authority from time
to time.
	 
	   	“LCH Contract Manager” means the person(s) nominated by LCH to manage the relationship
between the Parties created by this Agreement.
	 
	   	“LCH General Policy” means the general policy which LCH uses with regard to the markets
for which it provides central counterparty services, which is to treat all markets
substantially equally, except to the extent that LCH reasonably determines that the
requirements applicable to a market must be tailored to meet the characteristics and
needs of the particular market place, or to ensure and maintain standards that do not
adversely affect LCH’s risk, or to maintain the integrity and security appropriate to the
relevant market.
	 
	   	“LCH Materials” means any specifications, plans, methodologies, software, databases,
reports, processes, designs, documentation and know-how provided or made available by or
on behalf of LCH to the IPE for the proper purposes of this Agreement other than the IPE
Materials.
	 
	   	“LCH Procedures” means the procedures of LCH as from time to time in force, as published
from time to time by LCH.
	 
	   	“LCH Regulations” means the Regulations and Default Rules of LCH, as published from time
to time by LCH.
	 
	   	“London SPAN” means the margining system operated by LCH as at the date of this Agreement
and known as “London SPAN”.
	 
	   	“Material” means specifications, plans, methodologies, software, databases, reports,
processes, designs, documentation, information and/or know-how.
	 
	   	“New Contract” means, at the relevant time, any Futures or Options contract which is not
a Current Contract but which is introduced to trading by the IPE and accepted for
clearing by LCH pursuant to paragraph 6 of Schedule 1 (The Services).
	 
	   	“Olympus Completion Date” means the date upon which the proposed merger (as set out in
the Scheme Document) between LCH and Clearnet SA is completed. For this purpose, “Scheme
Document” means the document by that name which has been, or will be, sent to the
shareholders of LCH setting out details of a proposed

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	   	establishment of LCH Clearnet Group Limited as a holding company of LCH and Clearnet SA
and containing details of the Scheme of Arrangement to be made under section 425 of the
Companies Act 1985.
	 
	   	“Options” means any options contract as defined by Article 83 of the Financial Services
and Markets Act 2000 (Regulated Activities) Order 2001 admitted for trading on the IPE.
	 
	   	“Recognised Clearing House” or “RCH” means a clearing house recognised under FSMA.
	 
	   	“Recognised Investment Exchange” or “RIE” means an exchange recognised under FSMA.
	 
	   	“Recognition Requirements” means the threshold conditions for recognition of a Recognised
Investment Exchange or, as the case may be, a Recognised Clearing House for the purposes
of FSMA and the regulatory obligations of a Recognised Investment Exchange or, as the
case may be, a Recognised Clearing House, including the Financial Services and Markets
Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses)
Regulations 2001 and the provisions of REC in the FSA Rules, each as amended from time to
time.
	 
	   	“Registration System” means the trade registration system, including the relevant
hardware and software, from time to time used by the IPE to support the registration of
IPE Contracts, pre-trade administration and the routing of matched trades to LCH, being
at the date of this Agreement the system known as TRS.
	 
	   	“Registered Contract” means a contract arising between a Clearing Member and LCH upon the
registration of an IPE Contract pursuant to the LCH Regulations.
	 
	   	“Rules” means the IPE Regulations, the LCH Regulations and the LCH Procedures.
	 
	   	“Service Levels” means the measure(s) of the standard(s) to which the Services are to be
performed, as set out in Schedule 2 (Service Levels).
	 
	   	“Services” means the services provided by LCH pursuant to this Agreement, as defined in
paragraph 1 of Schedule 1, as amended from time to time in accordance with this Agreement
(The Services). References in this Agreement to the provision or receipt of the Services
to/by the IPE mean the provision or receipt of such of the Services to be provided to IPE
as described in Schedule 1 (The Services).
	 
	   	“Successor Operator(s)” means the entity or entities (which may include the IPE)
succeeding LCH in the provision or operation of services similar to and/or part of all of
the Services.
	 
	   	“Term” has the meaning ascribed to it in Clause 2.

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	1.2  	Interpretation Act 1978
	 
	   	The Interpretation Act 1978 shall apply to this Agreement in the same way as it applies
to an Act of Parliament.
	 
	1.3  	Subordinate legislation
	 
	   	References to a statutory provision include any subordinate legislation made from time to
time under that provision.
	 
	1.4  	Modification, etc. of statutes
	 
	   	References to a statute or statutory provision include that statute or provision as from
time to time modified or re-enacted or consolidated whether before or after the date of
this Agreement so far as such modification or re-enactment or consolidation applies or is
capable of applying to this Agreement and (so far as liability thereunder may exist or
can arise) shall include also any past statutory provision (as from time to time modified
or re-enacted or consolidated) which such provision has directly or indirectly replaced,
provided that nothing in this sub-clause 1.4 shall operate to increase the liability of
any Party beyond that which would have existed had this sub-clause 1.4 been omitted.
	 
	1.5  	Companies Act 1985
	 
	   	The expression “holding company” shall have the same meaning in this Agreement as its
definition in the Companies Act 1985.
	 
	1.6  	Clauses, Schedules, etc.
	 
	   	References to this Agreement include any Recitals and Schedules to it and this Agreement
as from time to time amended and references to Clauses, sub-clauses, paragraphs,
sub-paragraphs and Schedules are to Clauses, sub-clauses, paragraphs and sub-paragraphs
of, and Schedules to, this Agreement.
	 
	1.7  	Winding-up
	 
	   	References to the winding-up of a person include the amalgamation, reconstruction,
reorganisation, administration, dissolution, liquidation, merger or consolidation of such
person and any equivalent or analogous procedure under the law of any jurisdiction in
which that person is incorporated, domiciled or resident or carries on business or has
assets.
	 
	1.8  	Information
	 
	   	Any reference to books, records or other information means books, records or other
information in any form including paper, electronically stored data, magnetic media, film
and microfilm.

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	1.9  	Analogous terms, etc.
	 
	1.9.1  	Any reference to any English legal term or concept (including for any action, remedy, method
of judicial proceeding, document, legal status, statute, court, official governmental
authority or agency) shall, in respect of any jurisdiction other than England, be interpreted
to mean the nearest and most appropriate analogous term to the English term in the legal
language in that jurisdiction, as the context reasonably requires, so as to produce, as nearly
as possible, the same effect in relation to that jurisdiction as would be the case in relation
to England.
	 
	1.9.2  	The words “include”, “includes” and “including” and any words following them shall be
construed without limitation to the generality of any preceding words or concepts and vice
versa.
	 
	2  	Term
	 
	2.1  	This Agreement will come into effect on the date of this Agreement, except that the
provisions listed in sub-clause 2.2 below will come into effect on the Olympus Completion
Date. This Agreement shall continue in force until terminated in accordance with the terms of
this Agreement (the “Term”).
	 
	2.2  	The provisions referred to sub-clause 2.1 above are:

	 	(i)  	sub-clause 3.3 (Charges) and Schedule 4 (Fees);
	 
	 	(ii)  	sub-clause 4.1 (Provision of Trading Facilities);
	 
	 	(iii)  	sub-clause 4.2 (Exclusive Arrangements); and
	 
	 	(iv)  	sub-clause 15.2 (Whole Agreement) with respect to the matters referred to
in the other provisions listed in this sub-clause 2.2.

	2.3  	The Parties agree that with effect from the date of this Agreement, the agreement between
them entitled “Agreement as to Clearing” dated 27 May 1988, together with all amendments
thereto (including but not limited to the letter dated 1 July 1996 between the Parties in
respect of that agreement) shall terminate and cease to have any force and effect.
	 
	3  	Scope of this Agreement
	 
	3.1  	Appointment and Services
	 
	3.1.1  	LCH shall provide the Services during the Term in accordance with the terms of this
Agreement.
	 
	3.1.2  	In accordance with the terms of this Agreement, LCH shall be central counterparty to, and
clear, IPE Contracts submitted to it for clearing.
	 
	3.1.3  	The Parties acknowledge that some of the Services will be provided to Clearing Members and
some to the IPE. The provision of those Services to Clearing Members,

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	   	and the relationship between those Clearing
Members and LCH, shall be governed by and
subject to, inter alia, the Clearing
Membership Agreement and the LCH Regulations.
The Parties acknowledge and agree that neither
the Clearing Members nor the IPE Members nor
any other person (other than the Parties)
shall acquire any rights in respect of this
Agreement.
	 
	3.2  	Nature of Appointment
	 
	   	LCH is the IPE’s preferred supplier of the Services. LCH acknowledges that the IPE has
the right to obtain services (including any one or more of the Services), whether
generally or in relation to a particular type or types of IPE Contract, directly from
other persons (whether the IPE itself, any member of the IPE Group, or a third party).
	 
	3.3  	Charges
	 
	   	LCH shall be entitled to charge clearing fees to Clearing Members in accordance with
Schedule 4 (Fees) to this Agreement.
	 
	3.4  	Adoption of and Adherence to Service Levels
	 
	3.4.1  	The Parties agree from the date of this Agreement to negotiate in good faith with a view to
agreeing Service Levels in respect of the Services. The Parties shall arrange a meeting within
2 months of the date of this Agreement, at which meeting duly authorised representatives of
the Parties shall attend and seek to agree a process and timetable for achieving agreement to
Service Levels. That timetable shall provide for completion of the process within 9 months of
the date of this Agreement except as the Parties may otherwise agree. Completion of that
process will be achieved when the Parties each sign a copy of the agreed form document to
constitute Schedule 2 (Service Levels). For the avoidance of doubt, the Change Control
Procedure shall not apply to this process.
	 
	3.4.2  	Except in the instances where the Parties expressly agree otherwise, the Service Levels
shall include sanctions for material or persistent failure to meet the agreed Service Levels.
The Service Levels shall classify breaches as minor, material or very material and set out the
sanction in each case. Persistent minor failures shall be deemed material and persistent
material failures shall be deemed very material. One or more very material failures shall
constitute a material breach of this Agreement. Sanctions for material breaches may include an
adjustment to clearing fees.
	 
	3.4.3  	LCH shall provide the Services in accordance with:

	 	(i)  	The Service Levels, Good Industry Practice and the terms of this
Agreement (including, without limitation, Schedules 1 (The Services), 2 (Service
Levels) and 10 (Information Technology and Data Protection); and
	 
	 	(ii)  	English Law and/or the Law of domicile of Clearing Members, as
applicable.

	3.5  	Service Review

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	3.5.1  	The IPE and LCH shall conduct periodic reviews of the provision of the Services and the
terms upon which the Services are provided in order to assist the IPE in complying with FSA’s
principles on material outsourcing so as to ensure that the IPE complies with its obligations
as a Recognised Investment Exchange under FSMA and the Financial Services and Markets Act 2000
(Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001.
These reviews shall be on such terms and such frequency as may be agreed between LCH and the
IPE from time to time.
	 
	3.5.2  	Following any such review, either Party may request changes in the Services or Service
Levels to reflect the changed business requirements of either Party and/or advancements in
technology. All such requests shall be dealt with in accordance with the Change Control
Procedure.
	 
	3.6  	Problem Reporting
	 
	3.6.1  	LCH agrees to maintain appropriate records with regard to the provision of the Services.
	 
	3.6.2  	LCH shall promptly report in writing to the IPE Contract Manager any (actual or anticipated)
material failures, problems or developments which have had, or may have, an adverse effect on
the provision of the Services. Any relevant internal audit report concerning such failure
shall be provided promptly to the LCH Board.
	 
	3.7  	Insurance
	 
	   	LCH shall take out and maintain such insurance as shall, in accordance with good market
practice, be appropriate to the nature and scale of its operations, details of which
shall be provided to the LCH Board.
	 
	3.8  	Business Continuity
	 
	   	LCH shall take all reasonable steps to ensure business continuity, including (without
limitation) the steps set out in Schedule 3 (Business Continuity Arrangements).
	 
	3.9  	Benchmarking
	 
	   	The Services and Service Levels shall be subject to benchmarking, as provided in Schedule
7 (Benchmarking Process).
	 
	3.10  	Publicity and Public Announcements
	 
	3.10.1  	Approval
	 
	   	Neither Party shall make any public announcement relating to this Agreement or changes to
the Services, without the prior approval of the other Party. For the purposes of this
sub-clause 3.10, but without prejudice to Clause 11 (Confidentiality), “public
announcement” shall not include: (i) any communication in whatsoever form which does not
relate to communicating the terms of this Agreement and which relates to matters in the
ordinary course of business announced to any Clearing

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	   	Member or IPE Member; or (ii) any information which does not relate to communicating the
terms of this Agreement and which relates to matters in the ordinary course of business
and which is posted on any part of any private “member only” web site operated by either
LCH or the IPE.
	 
	3.10.2  	Oral Statements, etc.
	 
	   	Any oral statements made, or replies to questions given, by either Party relating to the
Services or this Agreement shall be consistent with any public announcements issued in
accordance with sub-clause 3.10.1 above.
	 
	4  	Fair Treatment
	 
	4.1  	Provision of Trading Facilities
	 
	   	LCH agrees that, for the Agreed Period, neither it nor any Group Company of LCH will
provide trading, matching or execution services as provided by an Exchange for any Energy
Product; provided that nothing in this sub-clause 4.1 or elsewhere in this Agreement
shall prevent it from providing central counterparty or other clearing services.
	 
	4.2  	Exclusive Arrangements
	 
	4.2.1  	Neither LCH nor any Group Company of LCH will enter into any arrangement which would (i)
prohibit LCH from providing the Services in relation to a Current Contract or any New
Contract; or (ii) otherwise prevent, penalise or discourage LCH from providing the Services.
	 
	4.2.2  	In the event that [***] in accordance with the LCH General Policy.
	 
	4.3  	Services to be competitive
	 
	   	LCH agrees that, unless more beneficial or favourable terms are offered to other persons
for objectively justifiable and non-discriminatory reasons (including material
differences in volume and material exchange subsidy of LCH development or operating costs
by another person), the terms upon which LCH provides the Services shall be no less
favourable than the terms offered to such other persons in accordance with the LCH
General Policy.
	 
	4.4  	Margin
	 
	   	With respect to the Services:
	 
	4.4.1  	LCH shall calculate initial margin requirements for Clearing Members by the use of London
SPAN or as otherwise set out in this sub-clause 4.4. This shall not prevent the IPE from
setting rates of initial margin in respect of IPE Contracts to be charged by IPE Members to
their clients; provided that, a rate of initial margin set by the IPE
	 
	

	***  	Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

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	   	(or any alteration thereof) shall not be less than that required of Clearing Members by
LCH.
	 
	4.4.2  	LCH shall set and periodically review the margin rates and other parameters for Registered
Contracts used in London SPAN. The Parties shall consult on any proposed amendment thereto.
LCH may increase a margin rate or change a parameter having the effect of increasing the
amount of required margin following such consultation, but may only reduce a margin rate or
change a parameter having the effect of reducing the amount of required margin with the IPE’s
prior written consent.
	 
	4.4.3  	Subject to 4.4.4 below if either of the Parties proposes the adoption of another
scenario-based margining system that employs contract level margin rates and inter-contract
margin offsets to replace London SPAN the Parties shall consult on the proposal. Following
such consultation LCH may adopt such a replacement margining system.
	 
	4.4.4  	If either Party proposes, within the framework of London SPAN or of a replacement scenario
based margining system adopted pursuant to sub-clause 4.4.3 above, to permit margin offsets
between Registered Contracts whether individually or in aggregate and: (i) contracts in other
Energy Products cleared by LCH; or (ii) contracts in other Energy Products not cleared by LCH,
the Parties shall consult and the LCH may make the change in question only with the IPE’s
prior written consent.
	 
	4.5  	Fair allocation of resources
	 
	   	LCH shall apply the LCH General Policy to the allocation of LCH’s staff and resources in
the performance of the Services. For the purposes of this sub-clause 4.5, the IPE Group
shall be viewed as a single unit.
	 
	4.6  	Integrity of IPE Open Interest
	 
	   	LCH agrees that, without the prior written consent of the IPE, neither LCH nor any Group
Company of LCH shall:
	 
	4.6.1  	other than following the issue by LCH of a Default Notice in respect of any Clearing Member
or in respect of transfers of any Registered Contracts between Clearing Members, permit the
transfer or close-out of any Registered Contract by means of any transfer to, or transaction
executed on or through, any Exchange, market or system other than the IPE;
	 
	4.6.2  	permit any open interest in IPE Contracts to be represented as open interest on other
Exchanges, markets or systems;
	 
	4.6.3  	otherwise than in accordance with sub-clause 4.4 above, permit any inter-contract credit,
inter-commodity credit or other position offset for margin purposes between IPE Contracts and
any other contracts cleared by LCH;

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	4.6.4  	amalgamate the delivery process for any Registered Contract with the delivery process for
any other contract cleared by LCH, provided that, in the event that LCH makes a proposal to
the IPE regarding the amalgamation of any such delivery process, the IPE will give reasonable
consideration to such proposal; or
	 
	4.6.5  	permit the inclusion of any Registered Contracts, or open interest in any IPE Contracts, in
any mutual offset arrangements with another clearing house.
	 
	4.7  	Representation and Consultation
	 
	4.7.1  	LCH agrees that the IPE shall be entitled to appoint: (i) an IPE representative (being an
IPE member of staff with appropriate knowledge and expertise of risk issues) to the LCH Risk
Committee; and (ii) an IPE representative (being an IPE member of staff with appropriate
knowledge and expertise of the business of that committee) to any other committee set up or
organised by LCH, the members or attendees of which may include representatives of persons
other than LCH and whose decisions and/or issues which it considers may affect all or part of
the IPE’s business or any business similar to the IPE’s business.
	 
	4.7.2  	LCH agrees that the IPE may appoint a representative to the energy product advisory group
immediately upon its formation.
	 
	4.7.3  	Reference in this sub-clause 4.7 to any committee or group includes that committee or group
by whatever name called and whether of LCH and/or any parent company or any one or more
committees or groups which take on one or more of the functions of such group or committee and
any sub-committee or subgroup of such group or committee.
	 
	4.8  	Membership of LCH
	 
	4.8.1  	Any IPE Member which is not a Clearing Member will be eligible to become a Clearing Member,
subject to such entry and other requirements as may be set out in the LCH Regulations and
adopted by LCH in accordance with the LCH General Policy.
	 
	4.8.2  	LCH will (i) consult with the IPE with regard to any amendment to existing LCH membership
requirements which might have a disproportionate adverse effect on Clearing Members or IPE
Members or applicants to become Clearing Members; (ii) give due consideration to the views of
the IPE; and (iii) only make such amendments as are consistent with the LCH General Policy.
	 
	4.8.3  	LCH agrees to maintain, and make publicly available, criteria for membership of LCH and to
apply such criteria in respect of any application for membership by a member of the IPE in
accordance with applicable law.
	 
	4.9  	IPE Contracts to be cleared by IPE Members
	 
	   	LCH shall not permit any LCH member which is not also an IPE Member to be the Clearing
Member for any IPE Contract.

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	4.10  	Default
	 
	   	Before issuing a Default Notice pursuant to the LCH Regulations to a Clearing Member who,
at the relevant time, has open interest in relation to IPE Contracts, LCH shall take all
steps as are reasonably practicable in the circumstances to consult with the IPE and
shall notify the IPE at least 30 minutes prior to issuing such Default Notice.
	 
	4.11  	Communication with Regulators
	 
	4.11.1  	Each of the Parties agrees promptly to notify the other Party of any material regulatory
issues or problems relating to the Services. The Parties agree to use all reasonable
endeavours to address such issues or problems in order to enable the Parties to comply with
their respective regulatory obligations.
	 
	4.11.2  	Each Party shall immediately notify the other Party if it receives a notification that FSA
is: (i) considering withdrawal of its status as a Recognised Clearing House or Recognised
investment Exchange, as the case may be; (ii) exercising powers of direction in such a manner
that may impact on the Services; or (iii) considering exercising such powers.
	 
	4.12  	Co-operation with auditors
	 
	4.12.1  	Each Party shall, upon the other Party’s (the “Requesting Party”) reasonable request and at
the Requesting Party’s expense, provide reasonable co-operation to any person carrying out a
statutory or financial services regulatory audit, investigation, information gathering or
similar function on the Requesting Party’s business, provided that nothing in this sub-clause
4.12 shall require a Party to breach any obligation or duty of confidentiality.
	 
	4.12.2  	LCH shall notify the IPE of any issues identified by LCH’s internal or external auditors
which affect or may affect LCH’s ability to provide the Services in accordance with this
Agreement.
	 
	5  	Relationship Management
	 
	   	The IPE and LCH shall each appoint (a) person/s to be contract manager and nominate a
senior executive to manage their relationship pursuant to this Agreement, including the
provision of the Services, in accordance with the provisions of Schedule 6 (Relationship
Management).
	 
	6  	Change Control
	 
	6.1  	Amendment to the Rules
	 
	6.1.1  	Power to amend
	 
	6.1.1.1  	The IPE may at any time extend or amend the IPE Regulations and, without limitation,
Schedule 11 (IPE Regulations) shall apply.

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	6.1.1.2  	LCH may at any time extend or amend the LCH Regulations and/or the LCH Procedures.
	 
	6.1.2  	Obligation to consider amendments
	 
	6.1.2.1  	The IPE shall consider in good faith making such amendments to the IPE Regulations as LCH
may reasonably request.
	 
	6.1.2.2  	LCH shall consider in good faith making such amendments to the LCH Regulations and/or the
LCH Procedures as the IPE may reasonably request.
	 
	6.1.3  	Procedure for amendment
	 
	   	A Party preparing to make any extension or amendment of its Rules which may affect the
other Party shall, in so far as is practicable in the circumstances: (i) consult with the
other Party and give the other Party such prior written notice of the final form and
content of the extension or amendment as may be practicable in the circumstances; and
(ii) in the case of such an extension or amendment which may have a material adverse
effect on the other Party, or as the case may be, an IPE Member, give the other Party
(except in the case of exercise of emergency powers under the Rules) no less than 10
Business Days’ written notice of the final form and content of the extension or amendment
prior to its coming into effect.
	 
	6.1.4  	Regulatory Requirements
	 
	6.1.4.1  	Without the prior written consent of LCH, unless so directed by FSA or a court of competent
jurisdiction, the IPE shall not adopt any provision in the IPE Regulations which may have the
effect of imposing on either Party an obligation which is inconsistent with this Agreement or
FSMA and/or the Recognition Requirements.
	 
	6.1.4.2  	Without the prior written consent of the IPE, unless so directed by FSA or a court of
competent jurisdiction, LCH shall not adopt any provision in the LCH Regulations and/or LCH
Procedures which may have the effect of imposing on either Party an obligation which is
inconsistent with this Agreement or FSMA and/or the Recognition Requirements.
	 
	6.2  	Amendment to this Agreement
	 
	   	Where either Party wishes to make a change to this Agreement or any of the Schedules to
this Agreement, other than the initial agreement of Schedule 2 (Service Levels) pursuant
to sub-clause 3.4 above, or any document agreed pursuant to this Agreement (a “Change”),
including:

	 	(i)  	the addition of new services or modification of existing Services;
	 
	 	(ii)  	the addition of new service levels or modification of existing Service
Levels; and/or
	 
	 	(iii)  	the addition of a New Contract,

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	      then Schedule 5 (Change Control) shall apply in respect of the Change.

	7  	Information Technology and Data Protection
	 
	   	The Parties shall comply with the provisions of Schedule 10 (information Technology and
Data Protection), as applicable.
	 
	8  	Responsibility of LCH
	 
	   	Subject to clause 12, LCH shall be responsible for a failure to perform its obligations
under this Agreement, save to the extent that such failure arises solely or mainly as a
result of:

	 	(i)  	any relevant IPE Dependency not being delivered; or
	 
	 	(ii)  	a Force Majeure Event, which event shall be dealt with in accordance with
Clause 13.

	9  	Intellectual Property Rights
	 
	9.1  	Materials
	 
	9.1.1  	As between the IPE and LCH:

	 	(i)  	the IPE shall own all Intellectual Property Rights in the IPE Materials;
and
	 
	 	(ii)  	LCH shall own all Intellectual Property Rights in the LCH Materials.

	9.1.2  	Each Party agrees to do all things and to execute all deeds, instruments, transfers or other
documents as may be necessary or desirable in order to give effect to this sub-clause 9.1.
	 
	9.2  	Licences
	 
	   	Each Party agrees to grant to the other Party such non-transferable and royalty-free
licences as may be necessary for the purpose of enabling the proper performance of this
Agreement in accordance with its terms; provided that if, as a result of a material
change in the Services, due to a Change initiated by the IPE or otherwise agreed by the
IPE, a new licence is necessary for such proper performance, the Parties shall agree to
the terms, including any fees, on which such licence shall be granted.
	 
	9.3  	Intellectual Property Rights Infringements
	 
	9.3.1  	Subject to sub-clause 9.3.4 below, LCH shall indemnify and keep the IPE indemnified from and
against any and all actions, claims, proceedings, losses, damages, costs, expenses (including
court and legal costs) and other liabilities of whatever nature (“Claims”) suffered, incurred
or sustained by the IPE as a result of any action, claim or proceeding made or brought by any
person alleging that the provision of those of the Services which are provided by LCH to the
IPE and their receipt by the IPE or the IPE’s use or possession of the LCH Materials or the
Material referred to in paragraph

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	(2)  	of the definition of “IPE Materials” or any part of them infringes the rights
(including Intellectual Property Rights) of any such person.
	 
	9.3.2  	For the purposes of sub-clause 9.3.1 above, where any action, claim or proceeding causes the
IPE’s quiet enjoyment for the purposes of this Agreement of the Services and/or their method
of delivery as set out in Schedules 1 (The Services) and 10 (Information Technology and Data
Protection), LCH Materials and/or the Material referred to in paragraph (2) of the definition
of “IPE Materials” or any part thereof to be disrupted or impaired, LCH shall at its own
expense and at the IPE’s option:

	 	(i)  	procure for the benefit of the IPE the right to continue to use and
exploit the Services, the LCH Materials and/or the Material referred to in paragraph
(2) of the definition of “IPE Materials” (as the case may be) in accordance with
this Agreement; or
	 
	 	(ii)  	modify or replace the Services, LCH Materials and/or the Material
referred to in paragraph (2) of the definition of “IPE Materials” (as the case may
be) so that no further infringement will occur; provided that such modified or
replacement part of the Services, the LCH Materials and/or the Material referred to
in paragraph (2) of the definition of “IPE Materials” (as the case may be) will meet
the same functionality as the original referred to in or pursuant to this Agreement.

	9.3.3  	Subject to sub-clause 9.3.4 below, the IPE shall indemnify and keep LCH indemnified from and
against any and all Claims suffered, incurred or sustained by LCH as a result of any action,
claim or proceeding made or brought by any person alleging that the use or possession of IPE
Materials provided by the IPE to LCH under sub-clause 9.2 above infringes the Intellectual
Property Rights of any person.
	 
	9.3.4  	The Party so indemnified under this sub-clause 9.3 (the “Indemnified Party”) shall:

	 	(i)  	promptly notify the other Party (the “Indemnifier”) of any action or
claim brought against it and which may result in the Indemnified Party making a
claim on the Indemnifier under this sub-clause 9.3. Upon the Indemnifier accepting
in writing that the relevant action or claim is covered in its entirety by the
relevant indemnity and subject to the Indemnified Party being reasonably satisfied
at all times with the Indemnifier’s conduct of the defence to the action, claim or
proceeding, the Indemnified Party shall allow the Indemnifier to control that
defence exclusively; and
	 
	 	(ii)  	provide all reasonable assistance to the Indemnifier (subject to the
Indemnifier meeting the reasonable costs and expenses of the Indemnified Party).

	10  	Representations, Warranties, Undertakings and Indemnities
	 
	   	Each Party represents, warrants and undertakes to the other that, as at the date of this
Agreement and throughout the Term:

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	 	(i)  	it has full capacity and authority to enter into and to perform its
obligations under this Agreement;
	 
	 	(ii)  	it shall, for the Term, maintain all authorisations, licences and/or
exemptions required to provide or receive (as the case may be) the Services in
accordance with this Agreement;
	 
	 	(iii)  	this Agreement is executed by a duly authorised representative of that
Party;
	 
	 	(iv)  	there are no actions, suits or proceedings or regulatory investigations
pending or, to that Party’s knowledge, threatened against or affecting that Party
before any court or administrative body or arbitration tribunal that is reasonably
likely to affect the ability of that Party to meet and carry out its obligations
under this Agreement;
	 
	 	(v)  	once duly executed, this Agreement shall constitute its legal, valid and
binding obligations; and
	 
	 	(vi)  	it shall not, by any act or omission, breach any software licence granted
to it by the other Party which is relevant to the performance by it of its
obligations under this Agreement.

	11  	Confidentiality
	 
	11.1  	Subject to sub-clause 11.5 below, each of the Parties shall:

	 	(i)  	keep confidential the terms of this Agreement and all information,
whether in written or any other form, which has been disclosed (by whatever means,
directly or indirectly), to it by or on behalf of the other Party, whether before or
after the date of this Agreement, including any information relating to Intellectual
Property Rights, Current Contracts, New Contracts, IPE Materials, operations,
processes, plans, market opportunities or business affairs of the person making the
disclosure or which relates to the provision or use of the Services to or by the IPE
or Clearing Members, which has been disclosed in confidence or which by its nature
ought to be regarded as confidential;
	 
	 	(ii)  	procure that its officers, employees, agents and representatives keep
secret and treat as confidential all such documentation and information; and
	 
	 	(iii)  	not use such information other than for the purposes of this Agreement.

	   	For the avoidance of doubt, LCH shall not discuss, without the IPE’s prior consent, such
confidential information relating to the IPE at any of LCH’s or of any of LCH’s Group
Companies’ product advisory groups or any similar or equivalent groups.
	 
	11.2  	Sub-clause 11.1 above does not apply to information:

	 	(i)  	which at the date of this Agreement is in, or at any time after the date
of this Agreement comes into, the public domain, other than in consequence of a
breach of this Agreement;

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	 	(ii)  	to the extent made available to the recipient Party by a third party who
is entitled to divulge such information and who is not under any obligation of
confidentiality in respect of such information and who has disclosed that
information under an express statement that it is not confidential;
	 
	 	(iii)  	to the extent required to be disclosed by the Rules or any applicable
Law or by the FSA, CFTC or any other governmental, regulatory or supervisory body or
authority of competent jurisdiction to whose rules the Party making the disclosure
is subject, whether or not having the force of law; provided that, the Party
disclosing the information shall notify the other Party of the information to be
disclosed (and of the circumstances in which the disclosure is alleged to be
required) as early as reasonably possible before such disclosure must be made and
shall take all reasonable action to avoid and limit such disclosure to any extent
lawfully and reasonably practicable;
	 
	 	(iv)  	which either Party is required to disclose to a third party (including,
for the avoidance of doubt, Clearing Members) in order properly to perform its
obligations under or pursuant to this Agreement; or
	 
	 	(v)  	which either Party discloses to any applicable tax authority to the
extent reasonably required to assist a settlement of the disclosing Party’s tax
affairs or those of any Group Company.

	11.3  	A Party receiving information subject to this Clause 11 shall ensure that each person to whom
such information is properly disclosed is made aware of, and is contractually bound to comply
with and complies with, all of the receiving Party’s obligations of confidentiality under this
Agreement as if that person were a Party to this Agreement in place of the receiving Party.
	 
	11.4  	Without limiting sub-clause 11.1 above, LCH acknowledges and agrees that all trade data
relating to Registered Contracts (the “Transaction Data”) are the property of the IPE and
undertakes that it will use the Transaction Data only for the purposes set out in sub-clause
11.5 below. The IPE grants LCH a royalty-free non-transferable licence to use and copy
Transaction Data or any part of it for any and all of the purposes set out in sub-clause 11.5
below.
	 
	11.5  	The IPE hereby permits LCH during the Term to use Transaction Data for the following
purposes:

	 	(i)  	as necessary to provide the Services or any part of them;
	 
	 	(ii)  	compiling end of day market statistics for use in management information
by LCH, its employees, agents, contractors, directors, officers and advisers in the
provision of the Services and, for the avoidance of doubt, including for the purpose
of compiling aggregate statistics in connection with LCH’s business as a Recognised
Clearing House;
	 
	 	(iii)  	calculation of intra-day and end of day margining obligations of the
Clearing Members in relation to their Registered Contracts and reporting to IPE

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	 	   	Members of the information relied upon in calculating such margin obligations or
otherwise for risk management purposes;
	 
	 	(iv)  	performing its obligations in respect of the Services under the LCH
Regulations and the LCH Procedures;
	 
	 	(v)  	complying with requests from the FSA, CFTC or any other relevant
governmental body or other authority, regulatory body or court of competent
jurisdiction or for the purposes of commencing, or defending, any arbitration or
court proceedings; provided that, LCH shall notify the IPE of the information to be
disclosed (and of the circumstances in which the disclosure is alleged to be
required) as early as reasonably possible before such disclosure must be made and
shall take all reasonable action to avoid and limit such disclosure to any extent
lawfully and reasonably practicable; and
	 
	 	(vi)  	providing to any Clearing Member any information or details regarding any
Registered Contract to which that Clearing Member is a party (apart from the
identity of the counterparty to any such Registered Contract where such Registered
Contract arose from a trade originally conducted on an anonymous basis);

	   	Provided that, in addition to the above, LCH may at any time compile and make publicly
available market statistics. Any other information may be made publicly available by LCH
with the prior express consent in each instance of the IPE.
	 
	11.6  	The IPE shall, to the extent that it is able to do so, provide LCH with such data or other
information which LCH may be required to produce from time to time to the FSA, CFTC or any
other authority, regulatory body or court referred to in sub-clause 11.5(iv) above.
	 
	11.7  	Each Party acknowledges and agrees that the other Party may disclose Transaction Data to its
employees, legal advisers, insurance brokers and underwriters, auditors and such other
professional advisers as the Parties may agree from time to time; provided that, such
disclosure is reasonably necessary for the proper performance of any such person’s functions
and that such person shall be required to keep the Transaction Data confidential.
	 
	12  	Limitation of Liability
	 
	12.1  	Subject to sub-clause 12.3 below, neither Party nor any of their respective affiliates,
directors, employees, agents, licensors and/or contractors shall be liable to the other with
respect to any claims whatsoever arising out of this Agreement for indirect, consequential,
special, punitive or exemplary damages, including without limitation, claims for loss of
profits or income or loss of use of either, loss of business expectations or business
interruptions. This sub-clause 12.1 shall apply regardless of any actual knowledge or
foreseeability of such damages.
	 
	12.2  	Subject to sub-clause 12.5 below, the total aggregate liability of each Party to the other
Party for all losses, damages, costs, claims and expenses of any kind arising

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	  	out of or in any way connected to this Agreement shall not
exceed £[***]. The
foregoing shall apply regardless of whether a claim arises in contract, tort, negligence,
strict liability or otherwise.
	 
	12.3  	The Parties acknowledge they have entered into this Agreement in reliance upon the
limitations of liability and disclaimers of warranties and damages set out herein and that the
same form an essential basis of the bargain between the Parties. The Parties agree that the
limitations and exclusions of liability and disclaimers of warranties and conditions specified
herein shall survive the termination of this Agreement.
	 
	12.4  	The IPE acknowledges, understands and accepts that, save as is set out in clause above, LCH
makes no warranty whatsoever to the IPE as to the Services, express or implied, and further
that the Services provided to Clearing Members (as identified in Schedule 1 hereto) are
provided “as is” for their benefit in accordance with the provisions of the LCH Regulations,
relevant LCH Clearing Membership Agreement, and any relevant GCM/NCM agreement (where
applicable). LCH disclaims any implied warranties of merchantability or fitness for particular
purpose. Neither LCH nor its managers, members, officers, employees or agents make any
warranty with respect to, and no such person shall have any liability to the IPE for the
accuracy, timeliness, completeness, reliability, performance or continued availability of the
Services provided by LCH to Clearing Members as specified in Schedule I (including but not
limited to the operation and functionality of systems utilised in relation thereto) or for
delays, omissions or interruptions therein. LCH shall have no duty or obligation to verify any
information received from IPE or any Clearing Member or NCM. Without limiting the generality
of the foregoing LCH disclaims any implied warranties of merchantability or fitness for
particular purpose regarding LCH or other systems utilised and the operation and functionality
thereof and disclaims all liability with regard thereto.
	 
	12.5  	Nothing contained in this Agreement shall restrict either Party’s liability for death or
personal injury resulting from any act, omission, negligence or fraud of that Party or its
officers, agents, employees or sub-contractors.
	 
	12.6  	Without prejudice to each Party’s obligations under this Agreement, each Party acknowledges
and agrees that it does not owe any duty of care to the other Party in relation to the
admission of any member or the exercise of its powers under the LCH Regulations or the IPE
Regulations, as the case may be.
	 
	13  	Force Majeure
	 
	13.1  	Force Majeure Events
	 
	13.1.1  	Subject to sub-clause 13.2 below, neither the IPE nor LCH shall be liable to the other for
any failure to fulfil its duties hereunder if and to the extent that such failure results from
an event, cause or circumstance which is beyond its reasonable control, and which is an act of
God, war damage, enemy action, the act of any government or other competent authority, riot,
civil commotion, rebellion, plague, epidemic, terrorism, storm, accident, fire, flood,
explosion, lockout, failure of telecommunications system or power supply, political unrest,
industrial dispute or disturbance, strike, boycott,
	 
	

	***	Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

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	   	embargo, adverse weather or atmospheric conditions, fraud of any person other than an
employee, director or agent of that Party, unforeseen shortage of personnel for medical
reasons, suspension of payments by or insolvency, receivership, administration,
bankruptcy or liquidation of any person or other similar cause (“Force Majeure Event”)
(which for the avoidance of doubt shall not include a failure of any sub-contractor to
perform its obligations under a sub-contract).
	 
	13.1.2  	LCH shall not be able to rely on sub-clause 13.1.1 above, to the extent that its failure to
fulfil its duties is due to, or connected with, a failure by LCH to fulfil its obligations
under Schedule 3 (Business Continuity Arrangements), except where such failure is itself the
result of a Force Majeure Event.
	 
	13.2  	Procedure
	 
	   	The Party unable to fulfil its duties pursuant to sub-clause 13.1.1 above (the “Affected
Party”) shall:

	 	(i)  	give written notice to the other Party (the “Other Party”) as soon as
reasonably practicable after it becomes aware of the occurrence or likelihood of a
Force Majeure Event, such notice to contain the following information:

	 	(a)  	a description of the Force Majeure Event that has
occurred or is likely to occur;
	 
	 	(b)  	the date from which the event has prevented or hindered
or will prevent or hinder the Affected Party in the performance of its
duties hereunder;
	 
	 	(c)  	a description of the duties so affected; and
	 
	 	(d)  	its best estimate of the date upon which it will be able
to resume performance of the affected duties;
	 
	 	(e)  	at all times continue to take steps in accordance with
Good Industry Practice to resume full performance of its obligations under
this Agreement;

	 	(ii)  	at all times use all reasonable endeavours to mitigate the consequences
of the Force Majeure Event; and
	 
	 	(iii)  	at reasonable intervals, or upon request by the Other Party, update such
Other Party as to the Force Majeure Event, its effect, the steps being taken or
planned to remedy it, and such other details as the Other Party may reasonably
request.

	   	The relief from liability under sub-clause 13.1.1 above shall last for the duration of
the Force Majeure Event if and so long as the Affected Party complies with this
sub-clause 13.2.

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	14  	Termination Events
	 
	14.1  	Insolvency, etc.
	 
	   	The IPE or LCH may terminate this Agreement immediately by notice to the other Party (the
“Defaulting Party”) where:

	 	(i)  	the Defaulting Party is unable, or admits in writing inability, to pay
its debts as they fall due, suspends making payments on any of its debts or, by
reason of actual or anticipated financial difficulties, commences negotiations with
one or more of its creditors with a view to rescheduling any of its indebtedness;
	 
	 	(ii)  	a moratorium is declared in respect of any of the Defaulting Party’s
indebtedness;
	 
	 	(iii)  	any corporate action, legal proceeding or other procedure or step is
taken (or any analogous procedure or step is taken in any jurisdiction) by or in
respect of the Defaulting Party in relation to:

	 	(a)  	the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution, administration or reorganisation (by
way of voluntary arrangement, scheme of arrangement or otherwise), other
than a solvent liquidation or reorganisation, of any member of the
Defaulting Party’s Group;
	 
	 	(b)  	a composition, assignment or arrangement with any
creditor;
	 
	 	(c)  	the appointment of a liquidator (other than in respect of
a solvent liquidation of any of the Defaulting Party’s Group Companies),
receiver, administrator, administrative receiver, compulsory manager or
other similar officer in respect of any of the Defaulting Party’s assets; or
	 
	 	(d)  	enforcement of any security over any of the Defaulting
Party’s assets; and

	 	   	such procedure: (1) if instituted against the Defaulting Party by a third party,
is not discharged within 10 Business Days; or (2) if instituted by the Defaulting
Party, then immediately;
	 
	 	(iv)  	the Defaulting Party becomes unable to pay its debts as they fall due for
the purposes of Section 123(1) (but excluding sub-Section (1)(a) thereof) of the
Insolvency Act 1986;
	 
	 	(v)  	the Defaulting Party makes any arrangement with or compounds with its
creditors or calls a meeting of its creditors for such purpose;
	 
	 	(vi)  	the Defaulting Party enters into any liquidation (other than for the
purposes of a voluntary reconstruction or amalgamation for which the prior written
consent of the other Party has been obtained); or

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	 	(vii)  	the Defaulting Party has an encumbrancer take possession or a receiver
or administrative receiver or administrator appointed (other than where such
possession or appointment is discharged within 10 Business Days of being effected)
of all or any material part of its assets.

	14.2  	Other Termination Events
	 
	   	Either Party may terminate this Agreement immediately (or at its option upon such period
of notice as it may specify) by notice to the other Party if:

	 	(i)  	the other Party has received notice that it will cease to be a Recognised
Clearing House or Recognised Investment Exchange, as the case may be; or
	 
	 	(ii)  	the Services do not at any time meet the IPE’s obligations under or
pursuant to FSMA as a Recognised Investment Exchange in respect of arrangements for
the clearing of IPE Contracts.

	14.3  	Fixed Period of Notice
	 
	   	At any time after the date of this Agreement either Party may terminate this Agreement by
the giving of 1 year’s written notice to the other Party, expiring at any time.
	 
	14.4  	Consequences of Termination
	 
	   	In relation to termination of this Agreement, the provisions to Schedule 8 (Exit
Management) shall apply.
	 
	15  	General
	 
	15.1  	Notices
	 
	15.1.1  	Addresses
	 
	   	Any notice, claim or demand in connection with, or pursuant to, this Agreement shall be
in writing (each a “Notice”) and shall be sufficiently given if delivered or sent to the
recipient at its facsimile number, telex number or address set out below or any other
facsimile number, telex number or address notified to the sender by the recipient for the
purposes of this Agreement.
	 
	   	Notices to the IPE:
	 
	   	Address: international House, 1 St Katharine’s Way, London E1W 1 UY.
	 
	   	Facsimile Number: +44 20 7265 5705.
	 
	   	Marked for the attention of: The Company Secretary.

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	   	Notices to LCH:
	 
	   	Address: Aldgate House, 33 Aldgate High Street, London EC3N 1 EA.
	 
	   	Facsimile Number +44 20 7426 7210.
	 
	   	Marked for the attention of: The Company Secretary.
	 
	15.1.2  	Form
	 
	   	A Notice shall be in writing in English and may be sent by messenger, facsimile or first
class prepaid post. A Notice shall be deemed to have been received on the next Business
Day, if sent by facsimile, and on the second Business Day from the time of posting, if
sent by first class post.
	 
	15.2  	Whole Agreement
	 
	   	This Agreement contains the whole agreement between the Parties relating to the subject
matter of this Agreement and supersedes the 1988 agreement referred to in Recital (C)
above and any other previous written or oral agreement between the Parties in relation to
the matters dealt with in this Agreement; provided that neither Party is attempting to
exclude liability for any fraudulent statements.
	 
	15.3  	Remedies
	 
	15.3.1  	So far as permitted by law and except in the case of fraud, each Party agrees and
acknowledges that its only right and remedy in relation to any representation, warranty or
undertaking made or given in connection with this Agreement shall be for breach of the terms
of this Agreement to the exclusion of all other rights and remedies (including those in tort
or arising under statute and for rescission, other than for fraudulent misrepresentation).
	 
	15.3.2  	The Parties acknowledge that damages may not be an adequate remedy for any breach of this
Agreement Subject to Clause 16 below either Party shall be entitled to obtain any legal and/or
equitable relief, including specific performance or injunctive relief, in the event of any
breach of the provisions of this Agreement.
	 
	15.4  	Survival of rights, duties and obligations
	 
	   	Termination of this Agreement for any cause shall not release a Party from:

	 	(i)  	any liability which at the time of termination has already accrued or
which thereafter may accrue in respect of any act or omission prior to such
termination; or
	 
	 	(ii)  	any provision of this Agreement which expressly or by implication applies
for a period after any such termination,

	   	and, for the avoidance of doubt, any Services which are provided after termination of
this Agreement shall be provided in accordance with the terms of this Agreement.

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	15.5  	Waiver
	 
	   	No failure of either Party to exercise, and no delay by it in exercising, any right,
power or remedy in connection with this Agreement (each a “Right”) shall operate as a
waiver of that Right, nor shall any single or partial exercise of any Right preclude any
other or further exercise of that Right or the exercise of any other Right.
	 
	15.6  	Variation
	 
	   	No variation of this Agreement shall be effective unless in writing and signed by or on
behalf of each Party.
	 
	15.7  	Assignment
	 
	   	Neither Party shall assign, novate or otherwise transfer this Agreement, in whole or in
part, without the prior written consent of the other Party, such consent not to be
unreasonably withheld.
	 
	15.8  	Sub-contracting and Outsourcing
	 
	15.8.1  	Subject to sub-clause 15.8.3 below, neither Party shall, without the prior written consent
of the other Party (such consent not to be unreasonably withheld), subcontract any of its
obligations under this Agreement.
	 
	15.8.2  	Sub-contracting by either Party will not relieve that Party of its obligations under this
Agreement and the sub-contracting Party remains fully responsible for the acts and omissions
of its sub-contractors and their employees, directors and agents.
	 
	15.8.3  	The consent under sub-clause 15.8.1 above shall not be required in relation to any
sub-contracting which is in place as at the date of this Agreement or in relation to any
sub-contracting which is not material and occurs in the normal course of that Party’s
business.
	 
	15.8.4  	If a Party, at any time, reasonably considers that:

	 	(i)  	the performance by a sub-contractor of a sub-contracting Party of its
obligations is unsatisfactory; or
	 
	 	(ii)  	any other performance by the sub-contractor is adversely affecting the
relationship between the IPE and LCH,

	   	then that Party shall notify the sub-contracting Party and shall ensure that the
subcontracting party shall address such concerns.
	 
	15.9  	Relationship between the Parties
	 
	15.9.1  	This Agreement does not set up or create an employer/employee relationship, partnership of
any kind, or association between the Parties.

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	15.9.2  	Save to the extent to which a Party is specifically authorised in writing in advance by the
other Party, neither Party is authorised or empowered to act as agent for the other for any
purpose.
	 
	15.10  	Further assurance
	 
	   	Each of the Parties shall, and shall use all reasonable endeavours to procure that any
necessary third party shall, execute such documents and do such acts and things as the
other Party may reasonably require for the purpose of giving to the other Party the full
benefit of all of the provisions of this Agreement.
	 
	15.11  	Invalidity
	 
	   	If any provision of this Agreement shall be held to be illegal, invalid or unenforceable,
in whole or in part, under any enactment or rule of law, such provision or part shall to
that extent be deemed not to form part of this Agreement but the legality, validity and
enforceability of the remainder of this Agreement shall not be affected.
	 
	15.12  	Costs and Taxes
	 
	   	Each Party shall bear all costs incurred by it in connection with the preparation and
negotiation of, and entry into, this Agreement and any documents entered into pursuant to
it.
	 
	15.13  	Third Party Rights
	 
	   	LCH acknowledges that the IPE has entered into this Agreement for the benefit of the IPE
and that LCH’s obligations under this Agreement (including under any indemnity) are
obligations to the IPE only. Except to the extent expressly stated in this Agreement,
this Agreement does not create any rights in any other person(s) for the purposes of the
Contracts (Rights of Third Parties) Act 1999.
	 
	15.14  	Governing Law
	 
	   	This Agreement, and the documents to be entered into pursuant to it, shall be governed by
and construed in accordance with English law.
	 
	16  	Dispute Resolution
	 
	16.1  	Negotiation
	 
	16.1.1  	In the event that a dispute or difference (a “Dispute”) arises between the Parties out of or
in connection with this Agreement, the Parties shall seek to resolve the Dispute by
negotiation by referring the Dispute first to:

	 	(i)  	in the case of LCH, any Managing Director; and
	 
	 	(ii)  	in the case of IPE, any member of the executive or his delegate in his
absence or unavailability,

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	   	(each a “Representative”).
	 
	16.1.2  	Such referral shall be initiated by one of the Parties notifying the other in writing that
the dispute resolution procedure set out in this sub-clause 16.1 shall apply and setting out
the nature of the Dispute. The Parties shall convene a meeting of the relevant
Representatives, and the relevant Representatives shall endeavour to resolve the Dispute,
within 5 Business Days of the date of the notice (the “Notice Date”). The joint written
decision (if any) of the relevant Representatives shall be binding on the Parties.
	 
	16.1.3  	In the event that the Dispute remains unresolved following that meeting, either Party may
refer the Dispute for further negotiation as between the Chief Executives of each of the
Parties, who (if either Party makes such election) shall meet and endeavour to resolve the
Dispute within 15 Business Days from the Notice Date. The joint written decision (if any) of
the Chief Executives shall be binding on the Parties.
	 
	16.2  	Mediation
	 
	   	In the event that the Parties are unable to resolve a matter in accordance with
sub-clause 16.1 above (and whether or not an election under sub-clause 16.1.3 above is
made), the following provisions shall apply:
	 
	16.2.1  	The Party seeking redress (the “Aggrieved Party”) shall give written notice to the other
Party setting out full particulars of the Dispute within 20 Business Days of the Notice Date.
	 
	16.2.2  	No later than 10 Business Days after service of such notice, the Aggrieved Party shall
organise a meeting (the “Dispute Resolution Meeting”) to be held at a mutually convenient
time, on a date no later than 20 Business Days from the date of service of the notice, at a
location in London. In the event that the Parties are unable to agree such a mutually
convenient time within such 10 Business Day period, then the Aggrieved Party shall nominate 3
different appointment times between 8 am and 6 pm on 3 separate Business Days within the
remainder of the 20 Business Day period, and the other Party shall select one such
appointment. In default of such selection by the other Party within 2 Business Days of
notification by the Aggrieved Party of the 3 appointment times, then the Aggrieved Party shall
select one of the 3 appointment times, and notify the other Party of the date and time thereof
at least 2 Business Days in advance.
	 
	16.2.3  	Each of the Parties agrees that it shall be represented at such Dispute Resolution Meeting
by one or more of its Chief Executive, Chairman, Deputy Chief Executive, Chief Operating
Officer or (in the case of LCH) any Managing Director or (in the case of the IPE) any member
of the executive, and that each Party shall use its best endeavours and negotiate in good
faith with a view to resolving the Dispute with or without financial recompense.
	 
	16.2.4  	In the event that the Parties are unable to reach a resolution of the Dispute, then they
shall adjourn the Dispute Resolution Meeting for a period of no longer than 10 Business Days
and they shall invite the services of a mutually agreed professional

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	   	mediator to assist them in achieving
a resolution at the resumed meeting
(the “Resumed Meeting”). The time
and place of the Resumed Meeting
shall be agreed between the Parties;
in default of agreement regarding
the time and place of the Resumed
Meeting, the procedure set out in
sub-clause 16.2.2 shall be applied,
the time periods referred to in
sub-clause 16.2.2 running from the
end of the 10 Business Day period
referred to in this sub-clause
16.2.4. The fees of the professional
mediator shall be shared equally
between the Parties and each Party
shall bear its own costs in
connection with such mediation.
	 
	16.3  	Arbitration
	 
	   	If the Parties are unable to resolve the Dispute at such adjourned meeting, then such
Dispute shall be finally settled by arbitration in London pursuant to the LCIA Rules in
accordance with the Arbitration Act 1996. It is agreed that:

	 	(i)  	the proceedings of the arbitration shall be confidential to the Parties;
	 
	 	(ii)  	the seat of arbitration shall be London and the place of arbitration
shall be London;
	 
	 	(iii)  	the language of the arbitration shall be English;
	 
	 	(iv)  	the arbitration shall be conducted by a single arbitrator, having
knowledge of or experience in relation to international clearing systems and
international financial or commodities futures markets to be appointed by written
agreement of the Parties or, failing such agreement within 15 Business Days of one
Party inviting the other to agree, by the LCIA;
	 
	 	(v)  	the fees of the arbitrator shall be shared equally between the Parties
and, unless the arbitrator orders otherwise, each Party shall bear its own costs in
connection with the arbitration;
	 
	 	(vi)  	the arbitrator shall have power to order any relief on a provisional
basis which he would have power to grant in a final award; and
	 
	 	(vii)  	the award of the arbitrator shall be final and binding on the Parties
and, to the extent permitted by the laws of England and Wales, the Parties hereby
waive any right to any form of appeal or to a court of law or other judicial
authority.

	16.4  	The Parties agree that any professional mediator involved in the mediation procedure
specified in sub-clause 16.2 above shall not take any part in any arbitration, whether as a
witness or otherwise, and any recommendations made by him in connection with such procedure
shall not be relied upon by either Party without the consent of the other Party and the
professional mediator.
	 
	16.5  	Neither Party shall, outside the negotiation and mediation procedure specified in sub-clauses
16.1 and 16.2 above, make use of, or rely upon, any “without prejudice statements” or
admissions made by the other Party in such procedures.

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	16.6  	Nothing in this Clause 16 shall prevent either Party from taking such action as it deems, in
its reasonable opinion, necessary in order to obtain interlocutory relief requiring compliance
with, or preventing breach of, a material term of this Agreement, including, without
limitation, initiating Court proceedings. The taking of any such action shall be without
prejudice to the Parties’ obligation to negotiate and mediate (or, as the case may be, to
continue to negotiate and/or mediate) any Dispute in accordance with sub-clauses 16.1 and 16.2
above.
	 
	17  	Jurisdiction
	 
	   	The Parties irrevocably submit to the non-exclusive jurisdiction of the Courts of England
and Wales to support and assist the arbitration process including, if necessary, the
grant of interlocutory relief pending the outcome of that process.

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In witness whereof this Agreement has been executed the day and year first written above.

SIGNED for and on behalf of

THE INTERNATIONAL PETROLEUM EXCHANGE OF LONDON LIMITED by:

	 	 	 	 	 
	 

	 	/s/ Richard C. Ward
	 	(Signature)
	 	 	 
	

	 		 	
	 
	 	RICHARD C. WARD, CEO
	 	(Name and Title)
	 	 	 
	 
	 	 	 	 
	SIGNED for and on behalf of THE LONDON CLEARING HOUSE LIMITED by:
	 
	 	 	 	 
	

	 	/s/ Arun Aggarwal
	 	(Signature)
	 	 	 
	 
	 	 	 	 
	

	 	Arun Aggarwal	 	 
	

	 	MD — Business Management	 	 
	

	 	And Authorised Signatory
	 	(Name and Title)
	 	 	 
	 
	 	 	 	 
	

	 	/s/ Richard Heyman
	 	(Signature)
	 	 	 
	 
	 	 	 	 
	

	 	Richard Heyman

Director
	 	(Name and Title)
	 	 	 

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Schedule 1

The Services

	1  	General
	 
	1.1  	The Services shall be clearing and related services in respect of IPE Contracts as set out in
the LCH Regulations and as more particularly set out hereafter and in paragraph 5.1 of
Schedule 10.
	 
	1.2  	The Services and related obligations, as set out in this Schedule, shall be provided as
follows:
	 
	1.2.1  	Services and related obligations provided to Clearing Members:
	 
	   	Sub-paragraphs 2.1, 2.2, 2.3, 2.4, 2.5, 2.7, 2.8, 3.1, 3.2.1, 3.3.1, 4.2.1, 4.3, and
paragraph 7 (where provided to the Clearing Members), sub-paragraph 8.2
(where provided to the Clearing Members) and paragraph 9.
	 
	1.2.2  	Services and related obligations provided to the IPE:
	 
	   	Sub-paragraphs 2.6, 3.2.2, 3.3.2, 3.4, 4.1, 4.2.2, and paragraphs 5, 6, 7 (where provided
to the IPE), sub-paragraph 8.1 and sub-paragraph 8.2 (where provided to the IPE).
	 
	2  	Acceptance of IPE Contracts for Registration
	 
	2.1  	Receipt of contract information
	 
	   	Particulars of eligible IPE Contracts (“Trade Particulars”) shall be presented for
clearing and LCH shall receive such particulars of IPE Contracts traded by means of:

	 	(i)  	direct input into the Registration System by IPE Members and/or the IPE’s
staff;
	 
	 	(ii)  	the supply of matched electronic trade information to LCH by the IPE via
an interface between the Registration System and CPS,

	   	and, subject to registration by LCH, such Trade Particulars shall be assigned by LCH to
accounts opened in the names of relevant Clearing Members.

	2.2  	Presentation and confirmation
	 
	   	Unless otherwise expressly agreed between the Parties, Trade Particulars presented to LCH
shall be deemed to be presented by the Clearing Member in whose name they are presented
and, where the IPE Regulations so provide, to be confirmed by such Clearing Member in
accordance with the LCH Regulations and the LCH Procedures. The IPE shall ensure that,
unless otherwise agreed by LCH, the IPE Regulations shall at all times authorise the IPE
to present and confirm such particulars to LCH on a Clearing Member’s behalf.

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	2.3  	Rejection
	 
	   	Notwithstanding the provisions of paragraph 2.2 above, LCH may, after consulting the IPE
wherever practicable, at its discretion reject any Trade Particulars which it reasonably
believes to be defective, incomplete, or corrupted or constitute a trade which is not
eligible for registration and/or deal with such Trade Particulars, in all cases in
accordance with the LCH Regulations and/or the LCH Procedures, or on such conditions as
it may reasonably impose. LCH shall notify the IPE promptly after an exercise of its
discretion under this sub-paragraph 2.3.
	 
	2.4  	Position Keeping
	 
	   	LCH shall ensure that it allows Clearing Members to monitor their own positions and those
of any IPE Member for whom they clear transactions.
	 
	2.5  	Registration 
 
Subject to:

	 	(i)  	sub-paragraph 2.3 above;
	 
	 	(ii)  	confirmation in accordance with the LCH Regulations and the LCH
Procedures by or on behalf of a Clearing Member,
	 
	 	(iii)  	payment of such cash margin, or provision to LCH of such margin cover,
as LCH may require in accordance with the LCH Regulations; and
	 
	 	(iv)  	compliance with the LCH Regulations by the Clearing Members in whose
names Trade Particulars are presented,

	   	LCH shall accept for registration and register each IPE Contract duly presented for
registration in the name of the relevant Clearing Member. Such registration shall take
place in accordance with the LCH Regulations.

	2.6  	The Parties acknowledge that at the date of this Agreement the time for registration of IPE
Contracts is one hour after the Registration System’s end-of-day signal sent to LCH. LCH
agrees not to amend such time without the prior agreement of the IPE.
	 
	2.7  	Central counterparty
	 
	   	By registering Trade Particulars of an IPE Contract, LCH shall become central
counterparty in respect of each Registered Contract.
	 
	2.8  	Corrections, redesignations etc.
	 
	   	Subject to any necessary IPE Member and/or Clearing Members consents, LCH shall use its
reasonable commercial endeavours to process all necessary corrections and re-designations
agreed between the Parties of IPE Contracts permitted and notified in accordance with the
IPE Regulations and the LCH Regulations and the LCH Procedures.

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	3  	Margin
	 
	3.1  	Generally
	 
	   	Subject to sub-clauses 4.4 and 4.6 of this Agreement, LCH shall require the payment by
Clearing Members of initial, intra-day, variation and delivery margin in such amounts
calculated on such basis (including as to permitted offsets and netting) and at such
times as LCH may determine, and may accept in lieu of margin such other security as it
may from time to time determine and valued on such basis as LCH may determine.
	 
	3.2  	Security for margin
	 
	3.2.1  	The Parties acknowledge that LCH may, and currently does, make provision in the LCH
Regulations and/or the LCH Procedures for the acceptance of security in place of cash for any
Clearing Member’s obligations to LCH.
	 
	3.2.2  	LCH shall not unfairly discriminate against IPE Members in relation to any such security
including as to the type of asset accepted as security, the manner in which it is valued or
the terms on which it is held; provided that, nothing in this sub-paragraph 3.2.2 shall
prevent the LCH from restricting the acceptance of particular types of collateral to
particular markets, including the IPE Market.
	 
	3.3  	Marking or settlement to market
	 
	3.3.1  	The Parties acknowledge that LCH may, and currently does, require under the LCH Regulations
that Clearing Members’ accounts of any kind in its books be operated on a marked to market
basis or a settlement to market basis.
	 
	3.3.2  	LCH shall consult with the IPE and obtain the prior consent of the IPE before materially
altering the requirement referred to in sub-paragraph 3.3.1 above.
	 
	3.4  	Official quotations
	 
	   	LCH shall, except in the case of manifest error or in any other case in which LCH
reasonably believes such value or price does not reasonably reflect the value or price of
the commodity, adopt such value or price as shall be supplied by the IPE as the basis for
determining the official quotation for the Business Day concerned which will remain
effective until the IPE shall notify LCH of any other value or price for such commodity.
in the case of manifest error or in any other case in which LCH reasonably believes such
value or price does not reasonably reflect the value or price of the commodity, LCH shall
use all reasonable endeavours forthwith to consult with the IPE to agree a proper and
fair corrected price.
	 
	4  	Expiry
	 
	4.1  	Administration of Physical Delivery

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	   	LCH and the IPE shall agree from time to time procedures for the delivery of any
commodity. Neither Party shall amend its Rules in such a way as to result in any
inconsistency with such agreed procedures.
	 
	4.2  	Exercise of Options
	 
	4.2.1  	LCH shall:

	 	(i)  	process the exercise by Clearing Members of Options; and
	 
	 	(ii)  	process the exercise of Options against Clearing Members.

	4.2.2  	LCH shall allocate exercises in accordance with such procedures as shall be agreed from time
to time between the Parties; provided that IPE acknowledges and accepts that the ability of
LCH to allocate exercises to Clearing Members may be adversely affected by factors outwith the
reasonable control of LCH, including the exercise by other Clearing Members.
	 
	4.3  	Settlement
	 
	   	LCH shall make and accept settlement by payment, credit to accounts and/or delivery in
respect of IPE Contracts in accordance with the LCH Regulations and the LCH Procedures.
	 
	4.4  	Invoicing back
	 
	   	If, where an IPE Contract is to be invoiced back or closed out by resale under the Rules,
the IPE fails to fix an invoicing back price or premium (in the case of an Option) or
resale price within 24 hours of being requested to do so by LCH, or the IPE is by virtue
of its closure, insolvency or for any other reason manifestly incapable of doing so, LCH
may (subject to the LCH Regulations) fix an invoicing back price or premium or resale
price (as the case may be) of such amount as it may in its absolute discretion determine
and may (subject as aforesaid) invoice back or close out by resale any IPE Contract at
that price or premium.
	 
	5  	Handling of Trade Positions or Emergencies
	 
	5.1  	Notification
	 
	   	If at any time either the IPE or LCH suspects or anticipates the development of an
excessive position or unwarranted speculation or any other undesirable situation or
practice affecting or capable of affecting the IPE Markets, IPE Members and/or IPE
Contracts (including any action which may amount to market abuse under FSA’s Code of
Market Conduct, as from time to time in force), it shall forthwith notify the other Party
of the relevant circumstances.
	 
	5.2  	Monitoring
	 
	   	If the circumstances contemplated by sub-paragraph 5.1 above are found to have arisen,
LCH shall take all such action as the IPE may reasonably require to monitor

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	   	the development of such circumstances and keep the IPE informed of such development.
	 
	5.3  	Market Abuse, etc.
	 
	   	If the IPE determines, in accordance with the IPE Regulations, that an excessive position
or unwarranted speculation or any other undesirable situation or practice is developing
or has developed which is affecting or capable of affecting the IPE Markets (including
any action which may amount to market abuse under FSA’s Code of Market Conduct, as from
time to time in force), LCH may, in accordance with the LCH Regulations and/or the LCH
Procedures, take such action in respect of Registered Contracts as may be agreed between
the IPE and LCH.
	 
	6  	New Contracts
	 
	6.1  	If the IPE wishes to introduce a New Contract, the IPE shall notify LCH of that fact and
provide adequate written details of the relevant New Contract and, the Change Control
Procedure shall apply.
	 
	6.2  	LCH shall endeavour to provide the Services in respect of all New Contracts submitted by the
IPE.
	 
	6.3  	Where LCH is unable to provide the Services in respect of New Contracts, it shall promptly
notify the IPE.
	 
	6.4  	Where LCH accepts a New Contract for clearing it shall assist with the design of the New
Contract particularly in respect of delivery and/or settlement mechanisms.
	 
	7  	Information, Documentation and Training
	 
	7.1  	Provision of information
	 
	   	LCH shall provide promptly such reports, with such contents and in such form, and deliver
or make available the same, in such manner as in each case is specified by the LCH
Regulations.
	 
	7.2  	Documentation
	 
	   	LCH shall provide to the IPE and Clearing Members, and update as necessary, such manuals,
documentation and other materials (which may be provided in electronic format) as may be
reasonably necessary to allow the IPE and IPE Members to receive the benefit of the
Services. Such material shall:

	 	(i)  	be of a reasonable standard of accuracy, presentation and scope;
	 
	 	(ii)  	be the most current version available; and
	 
	 	(iii)  	contain such information as would reasonably be required by any person
wishing to receive the benefit of the Services.

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	7.3  	Training
	 
	   	Where LCH carries out enhancements or upgrades to the Services or elements of it or the
IPE develops a New Contract pursuant to paragraph 6 above, LCH shall, at no additional
cost to the IPE or IPE Members, provide the IPE and Clearing Members with such training
as is reasonably required to enable the IPE and/or IPE Members to receive the benefit of
such enhancements, upgrades and/or New Contracts and (as may be necessary) to enable the
IPE to train IPE Members to receive the benefit of such enhancements, upgrades and/or New
Contracts.
	 
	8  	Reports and Records
	 
	8.1  	Reports
	 
	   	LCH shall provide, within 15 Business Days after the end of each month, reports
summarising, in respect of the Services, the actual performance achieved against the
Service Levels during that period.
	 
	8.2  	Records
	 
	   	LCH shall, and shall procure that its sub-contractors shall, produce and retain such
records as are reasonably necessary to enable the IPE and IPE Members to comply, in
respect, or as a result, of the Services, with their respective obligations under FSMA
and which are sufficient to enable the IPE to have a complete and accurate understanding
of LCH’s performance of its obligations under this Agreement. LCH shall ensure that:

	 	(i)  	the records are produced and retained in accordance with any reasonable
written directions made by the IPE’s external auditors; and
	 
	 	(ii)  	the records are retained for the minimum period required by applicable
Law, or 5 years, whichever is the greater.

	9  	Accounts
	 
	9.1  	Account mnemonics
	 
	   	LCH shall, in conjunction with the IPE, assign to each Clearing Member one or more unique
mnemonics (or other identifying codes).
	 
	9.2  	Accounts
	 
	9.2.1  	LCH shall open in the name of each Clearing Member (subject to the LCH Regulations and the
LCH Procedures) one or more accounts; provided that LCH shall not be under any obligation to
open more than one account in the name of a Clearing Member who is not an authorised person
under FSMA or more than two accounts in the name of a Clearing Member who is an authorised
person under FSMA.
	 
	9.2.2  	LCH shall allow Clearing Members to designate IPE Contracts into separate Client Accounts
opened in their names and to ensure that all relevant processes are

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	   	separately applied to any such separate Client Account opened in a
Clearing Member’s name and designated as such.
	 
	9.3  	Restriction of set-off of Client Accounts
	 
	   	In the case of any Clearing Member who is an authorised person under FSMA, LCH shall not
exercise any right of combination or set-off (whether permitted by the LCH Regulations or
the LCH Procedures, by agreement, by the general law or otherwise) between any account
opened in the name of that Clearing Member and designated a Client Account by that
Clearing Member and any account not so designated.
	 
	9.4  	Restriction on use of Client Accounts
	 
	   	An account designated a Client Account in the name of a Clearing Member who is an
authorised person under FSMA will be used by the Clearing Member for the purposes of
transactions registered in its name and executed (whether by that Clearing Member or by
an IPE Member and allocated to that Clearing Member) upon the instructions of clients and
for no other purpose notwithstanding that the Clearing Member shall be responsible for
all obligations to LCH in respect of such account.
	 
	9.5  	Payment of interest on accounts
	 
	   	Different rates of interest may be agreed for different purposes, including in particular
a higher rate in respect of default fund contributions. LCH shall pay to Clearing
Members, in respect of margins held by LCH from IPE Contracts, interest on such basis as
shall from time to time be agreed with the IPE. Rates payable on any such agreed basis
shall not, without reasonable cause, be worse than the rates offered to Clearing Members
in respect of other contracts cleared through LCH and shall be reasonable in comparison
with rates paid by other clearing houses which clear transactions competitive with lPE
Contracts.

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Schedule 2

Service Levels

To be completed in accordance with sub-clause 3.4

The Service Levels can be altered in accordance with the Change Control Procedure.

-38-

 

Schedule 3

Business Continuity Arrangements

	1  	Implementing Arrangements
	 
	1.1  	Maintenance of continuity arrangements
	 
	   	LCH shall ensure that it has in place at all times appropriate business continuity
arrangements, having regard to the nature of the Services and LCH’s role as a Recognised
Clearing House.
	 
	1.2  	Continuity facilities
	 
	1.2.1  	LCH’s business continuity arrangements shall include the provision of off-site continuity
facilities at (a) separate location(s) from its main facilities so as to allow the LCH to
continue to provide the Services, subject only, in the circumstances giving rise to their use,
to minor and reasonable interruptions which shall not exceed the time period referred to in
paragraph 3 below.
	 
	1.2.2  	LCH agrees that its business continuity arrangements might be enhanced if its alternative
facilities were to be located further from its main facilities. LCH agrees to use its
reasonable commercial endeavours to review whether locating such alternative facilities
further from its main facilities might provide a benefit.
	 
	2  	Maintenance
	 
	2.1  	LCH shall maintain the Business Continuity Arrangements in accordance with Good Industry
Practice.
	 
	2.2  	LCH shall advise the IPE of the ongoing development of the Business Continuity Arrangements
and shall have regard to the reasonable requests of the IPE in making amendments to such
arrangements.
	 
	3  	Continuation after disruption
	 
	   	Without prejudice to the terms of paragraph 1 above, LCH shall ensure that the Business
Continuity Arrangements will enable LCH to continue providing all of the Services within
24 hours after the provision of any of them is disrupted by any event which for any
reason wholly or partially interferes in a material way with LCH’s ability to provide the
Services.
	 
	4  	Testing
	 
	   	LCH shall perform a full test of the Business Continuity Arrangements as they affect the
provision of the Services at least 2 times per year to ensure their effectiveness. As
soon as practicable after carrying out every such test, LCH shall notify the results
thereof to the IPE.

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	5  	Force Majeure
	 
	   	For the avoidance of doubt, this Schedule 3 shall be subject to Clause 13 of this
Agreement.

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Schedule 4

Fees

	1  	Fee Levels
	 
	1.1  	Current Contracts
	 
	   	Subject to sub-paragraphs 1.4 and 1.5 below, all fees payable by Clearing Members
determined by or on behalf of LCH (or any Group Company of LCH) (the “Fees”) for Current
Contracts [***].
	 
	1.2  	Similar New Contracts
	 
	   	Subject to sub-paragraph 1.4 and 1.5 below, the Fees for Similar New Contracts [***]. For this purpose, and
the purposes of this Schedule, “Similar” is to be construed in accordance with the
following table, any contract appearing in the second column (2) being “Similar” to any
contract appearing opposite it in the first column (1):

	 	 	 	 	 	 	 	 
	 	 	 
	 	(1)	 	 	 	 	(2)	 
	 	 	 	 	 	 
	 	Brent Crude Futures

	 	 	 
	 	[***]	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	 
	 	 	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	Gas Oil Futures

	 	 	 
	 	[***]	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	 
	 	 	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	Natural Gas Futures

	 	 	 
	 	[***]	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	 
	 	 	 
	 	 	 	 	 	 

	 
	 

	***	Certain information on this page has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

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	 	(1)	 	 	 	 	(2)	 
	 	 	 	 	 	 
	 	Electricity Futures

	 	 	[***]
	 	 	 
	 	 	 	 	 	 

	1.3  	Other New Contracts
	 
	1.3.1  	The Fees for New Contracts which are not Similar to Current Contracts in accordance with the
table in sub-paragraph 1.2.1 above shall be determined by LCH subject to the prior written
agreement of IPE.
	 
	1.3.2  	In determining the Fees payable by Clearing Members on any such New Contract the Parties
shall have regard to the level of marginal development and operating costs to be incurred by
LCH in respect of such New Contract.
	 
	1.3.3  	The parties agree that LCH Fees for any New Contract of the type referred to in this
sub-paragraph 1.3 shall provide a commercially reasonable return to LCH to reflect, inter
alia, the level of investment made and financial and business risk borne by LCH in offering
the Services in respect of such New Contract.
	 
	1.3.4  	Without prejudice to paragraph 6 of Schedule 1, in the event that IPE declines, fails or
omits to give its consent to any Fees proposed by LCH for any New Contract of the type
referred to in this sub-paragraph 1.3, within 15 Business Days of the making of such proposal
by LCH, LCH shall have the right to decline to provide the Services in respect of such New
Contract and shall have no liability in respect thereof.
	 
	1.4  	Unforeseen Circumstances
	 
	1.4.1  	With regard to any Current Contract and any New Contract which is Similar to a Current
Contract and in the event of unforeseen circumstances, LCH may propose to the IPE an increase
in the Fees which would make the Fees for that Current Contract or New Contract greater than
those set for Current Contracts in the period of LCH’s

	 
	 

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

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	   	financial year ending in 2002, and IPE shall not unreasonably withhold its consent to
such increase.
	 
	1.4.2  	For the purposes of this sub-paragraph 1.4, it is agreed that, in the event of any such
unforeseen circumstance, it would be unreasonable for the IPE to withhold its consent to any
proposed fee increase if the result of withholding such consent would be that in respect of
any Current Contract or any New Contract which is Similar to a Current Contract the operating
cost to LCH in providing the Services in any financial year in respect of that Contract would
be more than the Fees charged by LCH of Clearing Members in respect of such Contract.
	 
	1.5  	Material change in the Services and/or Service Levels
	 
	   	In circumstances where either Party proposes a material change in the Services or Service
Levels, in such a way as to lead directly to material development costs or a material
increase in LCH’s operating costs, LCH may bring forward proposals for increases in the
Fees for Current Contracts and Contracts Similar to Current Contracts. The IPE shall give
reasonable consideration to such proposals. The proposals may be implemented subject to
the written consent of the IPE, such consent not to be unreasonably withheld.
	 
	1.6  	Delivery Fees
	 
	   	Notwithstanding sub-paragraph 1.2 above, the Parties agree that with regard to any New
Contract which is Similar to a Current Contract appearing in the table in sub paragraph
1.2, the IPE acknowledges that LCH may incur material marginal development costs in
respect of delivery processes and that LCH’s marginal operating costs in respect of
deliveries may be, or may reasonably be expected to be, materially greater than the
equivalent costs in relation to delivered Current Contracts. In such circumstances LCH
may bring forward proposals to set delivery fees charged to Clearing Members at a higher
level than the delivery fees for equivalent Current Contracts. LCH shall consult the IPE
on such proposals which shall be implemented subject to the IPE’s prior written consent,
such consent not to be unreasonably withheld.
	 
	2  	Fee Collections
	 
	   	At the request of the IPE and if permitted by the IPE Regulations, LCH shall collect from
Clearing Members and pay to the IPE such levies as may from time to time be payable by
such Clearing Members to the IPE, in which event:

	 	(i)  	LCH shall not be obliged to make such collection at times or in a manner
other than the times or manner at or in which LCH would normally collect from
Clearing Members money due to LCH;
	 
	 	(ii)  	LCH shall provide to the IPE within 5 Business Days of the end of each
month a statement showing the amount collected in such detail and on such terms as
may be agreed, together with payment of such amount to the IPE;

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	 	(iii)  	LCH shall not be obliged to make any rebate or repay any levy which may
be due from the IPE to Clearing Members; and
	 
	 	(iv)  	LCH shall not be obliged to pursue such collection where a Clearing
Member defaults in payment.

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Schedule 5

Change Control

	1  	Discussion of Changes
	 
	   	Within five Business Days after either Party (the “Proposing Party”) notifies the other
(the “Receiving Party”) of a proposal for a Change, the IPE and LCH shall discuss the
relevant Change to agree whether they can proceed further with the proposed Change or
wish to abandon the proposed Change.
	 
	2  	Progression of Changes
	 
	   	If the Parties agree to proceed further with a Change following discussions under
paragraph 1 above, then the Proposing Party will prepare and submit to the Receiving
Party a document (a “Change Control Notification”) which shall substantially reflect the
details of the Change and shall contain the matters to be agreed formally by the Parties
in respect of that Change.
	 
	3  	Contents of the Change Control Notification
	 
	   	Each Change Control Notification shall take the form as agreed from time to time between
the Parties and shall contain:

	 	(i)  	a serial number,
	 
	 	(ii)  	the originator and date of the request for the relevant Change;
	 
	 	(iii)  	the reason for the relevant Change;
	 
	 	(iv)  	full details of the relevant Change;
	 
	 	(v)  	details of any variations to this Agreement to be made as a result of the
relevant Change;
	 
	 	(vi)  	a proposed timetable for implementing the relevant Change;
	 
	 	(vii)  	the date of expiry of validity of the Change Control Notification as
agreed between the Parties; and
	 
	 	(viii)  	provision for signature by the IPE and LCH for acceptance or rejection of the
Change Control Notification.

	4  	Consideration of Change Control Notification
	 
	   	In respect of each Change Control Notification, the Receiving Party will, within the
period of its validity, evaluate the Change Control Notification and, as appropriate:

	 	(i)  	approve the Change; or
	 
	 	(ii)  	reject the Change; or

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	 	(iii)  	endeavour to reach agreement with the Proposing Party on any changes
needed to the Change Control Notification to make the Change acceptable to the
Proposing Party.

	5  	Notification
	 
	5.1  	If the Receiving Party accepts the Change Control Notification (either as submitted by the
Proposing Party or as amended by agreement between the Parties), then the IPE and LCH will
sign as agreed, as soon as possible thereafter, two copies of the Change Control Notification,
with each Party retaining one signed copy. Upon the Change Control Notification being signed
by both Parties, this Agreement shall, as appropriate, be taken to have been amended in
accordance with the Change Control Notification.
	 
	5.2  	Unless and until the Parties have agreed the contents of a Change Control Notification, the
Parties must continue to perform their respective obligations under this Agreement without
that variation.
	 
	6  	Change to Services
	 
	   	In relation to any proposed Change involving a Change to the Services, if the proposed
Change to the Services would result in the LCH providing a service which the Parties
agree was provided by LCH as at the date of this Agreement (but not specified in Schedule
1 for whatsoever reason), LCH shall approve the proposed Change, and the Parties shall
agree to whom that Service is provided, and shall agree to amend Schedule 1 (including
sub-paragraph 1.2 of Schedule 1) accordingly.

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Schedule 6

Relationship Management

	1  	The IPE Contract Manager and LCH Contract Manager
	 
	1.1  	The principal point of contact between the IPE and LCH in relation to issues arising out of
the performance of the Services will be the IPE Contract Manager and the LCH Contract Manager.
Either Party acting reasonably may change the identity of their respective representative at
any time by prior written notice to the other Party.
	 
	1.2  	Unless the IPE otherwise agrees, LCH shall ensure that the LCH Contract Manager does not
undertake any work for LCH or any Group Company of LCH on any Energy Products other than
provision of services to the IPE Group.
	 
	1.3  	Meetings between the IPE Contract Manager and the LCH Contract Manager will take place
regularly but no less than six times per calendar year. Such meetings will be held to discuss
the day-to-day operational issues arising out of the provision of the Services, and any issues
which may require escalation to the next meeting of the IPE/LCH Liaison Committee.
	 
	1.4  	In the event that an issue requires to be escalated to the IPE/LCH Liaison Committee, the IPE
Contract Manager and the LCH Contract Manager shall work together to prepare such reports as
may be appropriate for submission to the. IPE/LCH Liaison Committee.
	 
	2  	The IPE/LCH Liaison Committee
	 
	2.1  	The objective of the IPE/LCH Liaison Committee is to act as an escalation point for the IPE
Contract Manager and/or the LCH Contract Manager and to ensure that strategic as well as
operational issues are being raised and addressed as between the Parties. Strategic issues
affecting the Services should be presented to the IPE/LCH Liaison Committee by either Party as
soon as reasonably practicable to ensure appropriate prioritisation and assist decision
making.
	 
	2.2  	The membership of the IPE/LCH Liaison Committee shall, at a minimum, be as follows:

	 	 	 	 	 
	

	 	For the IPE:
	 	For LCH:
	

	 	A Director
	 	A Director
	

	 	IPE Contract Manager
	 	LCH Contract Manager

	2.3  	Meetings of the IPE/LCH Liaison Committee shall be held at least quarterly. Additional
meetings may be called upon reasonable notice given by either Party.
	 
	2.4  	The IPE Contract Manager and the LCH Contract Manager shall agree the time, location, agenda,
procedures and method of recording each meeting.

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	2.5  	Both the IPE and LCH will take all reasonable steps to ensure that their appropriate
representatives or suitable alternates attend all meetings.

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Schedule 7

Benchmarking Process

	1  	Benchmarking Notices
	 
	1.1  	The IPE may, by notice in writing to LCH (a “Benchmarking Notice”), subject:

	 	(i)  	any aspect of the Services (other than Fees and charges); and/or
	 
	 	(ii)  	the Service Levels,

	   	to formal benchmarking.

	1.2  	The IPE may withdraw any Benchmarking Notice, and cancel the appointment of the Benchmarking
Advisor (as defined in sub-paragraph 2.1 below), at any time before acceptance by the
Benchmarking Advisor of his or her appointment (or at any time with LCH’s written consent).
	 
	2  	Benchmarking Advisor
	 
	2.1  	The benchmarking process shall be undertaken by an organisation recognised as having
benchmarking capability nominated by the IPE and agreed by LCH (such agreement not to be
unreasonably withheld) (the “Benchmarking Advisor”). For the avoidance of doubt, the
Benchmarking Advisor shall not be an employee, director or other staff member of an RCH or
overseas equivalent. IPE shall provide to LCH evidence of the proposed Benchmarking Advisor’s
qualifications and experience.
	 
	2.2  	IPE shall bear the fees of the Benchmarking Advisor.
	 
	2.3  	The Benchmarking Advisor shall be required to submit to the Parties the name and curriculum
vitae of each of its proposed personnel to be deployed on the matter. Each Party shall have
the right to object to the deployment of proposed personnel and to require the Benchmarking
Advisor to propose (and submit particulars of) alternative personnel, provided that the
reasons for its objections are reasonable, and are supplied to the other Party and the
Benchmarking Advisor in writing within 10 Business Days of the Parties receiving the
particulars of the personnel.
	 
	2.4  	The Benchmarking Advisor shall be required to enter into an appropriate confidentiality
agreement on terms to be agreed between the Parties.
	 
	2.5  	The IPE shall not exercise its right to institute the benchmarking process more than once
every two calendar years, unless LCH agrees otherwise, except that the IPE may institute such
benchmarking process within six weeks of the occurrence of a material failure of a material
part of the Services.
	 
	3  	Benchmarking Terms of Reference
	 
	3.1  	In order that there are no ambiguities in relation to each Party’s understanding of how the
benchmarking activity is to be undertaken, its findings interpreted and any resulting actions
taken, the Benchmarking Advisor will be instructed to conduct the

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	   	benchmarking activity in accordance with a written set of instructions (the “Benchmarking
Terms of Reference”). The IPE shall prepare the first draft of the Benchmarking Terms of
Reference and deliver it to LCH. The IPE and LCH shall endeavour to agree the
Benchmarking Terms of Reference. If the IPE and LCH are unable to agree the Benchmarking
Terms of Reference within 20 Business Days of the date on which the first draft was
delivered to LCH, either Party may request the Benchmarking Advisor to prepare a draft
Benchmarking Terms of Reference. Neither Party shall unreasonably withhold its approval
of the draft Benchmarking Terms of Reference prepared by the Benchmarking Advisor.
Following agreement of the Benchmarking Terms of Reference, a representative of each
Party shall sign the Benchmarking Terms of Reference, which shall then be delivered by
either Party to the Benchmarking Advisor.
	 
	3.2  	As a minimum, the Benchmarking Terms of Reference will instruct the Benchmarking Advisor:

	 	(i)  	to compare, using generally accepted benchmarking processes, the
benchmarked matter at the start of the calendar year during which the Benchmarking
Notice is served (the “Benchmarking Time”) with service levels for equivalent
services, but taking into account any information provided and representations made
to the Benchmarking Advisor by the Parties;
	 
	 	(ii)  	as to the external party or parties providing services against which the
Services will be compared;
	 
	 	(iii)  	to assess objectively the suitability and competitiveness of the
benchmarked matter when considered against:

	 	(a)  	the service performance for the 12 month period prior to
the Benchmarking Time which shall cover scope, quantity, quality,
composition and complexity of the service requirements; and
	 
	 	(b)  	the current and expected service requirements for the 12
months after the Benchmarking Time, covering quantity, quality, composition
and complexity of the service requirements;

	3.2.1  	to present a written report summarising his findings and conclusions (the “Benchmarking
Report”) to the IPE and LCH, as soon as practicable and, in any event, no later than 8 weeks
after the date on which the Benchmarking Terms of Reference were settled in accordance with
sub-paragraph 3.1 above.
	 
	3.3  	For the avoidance of doubt, the Benchmarking Advisor may consider factors other than those
set out in the Benchmarking Terms of Reference (but he may not disregard factors which are set
out therein) where not to do so would result in the Benchmarking Report being materially
unfair to either Party.

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	4  	Further Obligations of the Parties
	 
	   	Each Party shall provide the Benchmarking Advisor with such information and assistance as
shall be agreed between the Parties. The Parties shall co-operate in good faith with the
Benchmarking Advisor. The Parties agree that they may disclose to the Benchmarking
Advisor the terms of this Agreement.
	 
	5  	Benchmarking Reports
	 
	5.1  	The IPE and LCH shall be given a period of 20 Business Days following receipt of the
Benchmarking Report to review and comment on the findings.
	 
	5.2  	The information in any and all Benchmarking Reports shall be treated in the same way as if it
were confidential information disclosed by a Party under this Agreement.
	 
	5.3  	Where the Benchmarking Report identifies that the Service Levels are lower than those
recommended by the Benchmarking Adviser, or identifies in some other respect that the Services
and/or Service Levels are inferior to those recommended by the Benchmarking Adviser, LCH shall
consider the relevant recommendation and make such adjustments to the Services as it considers
appropriate. LCH shall provide the IPE with an explanation should it consider the making of
such adjustment(s) inappropriate. Either Party may treat any such response as a Dispute to be
resolved in accordance with Clause 16 of this Agreement.

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Schedule 8

Exit Management

	1  	Development of Exit Management Plan
	 
	   	Following the date of this Agreement, the Parties shall prepare an exit management plan
to facilitate the provision of replacement Services to the IPE by (a) nominated Successor
Operator(s) including, for the avoidance of doubt, transfer of open interests to such
Successor Operator(s) (the “Exit Management Plan”). Each of the Parties, acting in good
faith, shall use their respective reasonable endeavours to agree the Exit Management Plan
no later than 9 months after the date of this Agreement. Once agreed, the Exit Management
Plan shall be signed by both Parties.
	 
	2  	The Exit Phase
	 
	   	During the Exit Phase:

	 	(i)  	LCH shall use all reasonable endeavours to ensure that the Services are
supplied in accordance with this Agreement and the Service Levels;
	 
	 	(ii)  	LCH and the IPE shall use all reasonable endeavours during the Exit Phase
to implement the Exit Management Plan successfully and in full;
	 
	 	(iii)  	where the Exit Management Plan so provides, LCH shall provide the IPE
and/or any nominated Successor Operator(s) with copies of all information identified
in such Exit Management Plan in such form as may be agreed between the Parties in a
timely fashion in accordance with the Exit Management Plan;
	 
	 	(iv)  	LCH shall return or procure the return to the IPE of all property of the
IPE relevant to the Services and which belongs to the IPE and which is in the
possession of LCH, its officers, employees, agents or contractors; and
	 
	 	(v)  	the IPE shall return or procure the return to LCH of all property of LCH
relevant to the Services and which belongs to LCH and which is in the possession of
the IPE, its officers, employees, agents or contractors;

	   	provided that, in the performance of the Exit Management Plan, LCH shall not be required
to breach any duty of confidentiality properly owed to any person nor to transfer or
otherwise deal with any Registered Contracts without such member consents as the Parties
deem appropriate.

	3  	Intellectual Property Rights
	 
	   	On termination of this Agreement, any licence to LCH of the IPE’s Intellectual Property
Rights, and any licence to the IPE of LCH’s Intellectual Property Rights, shall cease.

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	4  	IPE Materials and LCH Materials
	 
	   	Upon termination of this Agreement, LCH shall identify the IPE Materials by written
notice to the IPE and the IPE shall identify the LCH Materials by written notice to the
LCH and:

	 	(i)  	LCH shall return the IPE Materials to the IPE and the IPE shall return
the LCH Materials to LCH; and/or
	 
	 	(ii)  	if the IPE so elects by written notice, LCH shall delete the IPE
Materials from all information files, if any, maintained by LCH; and, if LCH so
elects by written notice, the IPE shall delete the LCH Materials from all
information files, if any, maintained by the IPE.

	5  	Payment
	 
	   	The Parties agree that the costs of implementing the Exit Management Plan shall be borne
as set out therein, as shall the basis for the recovery of any unrecovered development
costs.

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Schedule 9

IPE Dependencies

	1  	Records
	 
	   	Throughout the Business Day the IPE shall provide LCH with a full, complete and accurate
record of all IPE Contracts entered into on that Business Day in machine readable form in
accordance with the IPE’s procedures.
	 
	2  	Details of IPE Contracts
	 
	2.1  	The IPE shall ensure at all times that IPE Members are required to present to the IPE details
of all IPE Contracts entered into on the relevant day so far as is known to them and the IPE
shall take all reasonable steps to ensure that the IPE Regulations are enforced in that
regard.
	 
	2.2  	The IPE shall at all times maintain full, complete and accurate records of all IPE Contracts
presented for registration to LCH, except IPE Contracts arising from the exercise of
registered Options. Such records shall be in such form as may be agreed from time to time
between LCH and the IPE; provided that at least the following information shall be retained by
the IPE:

	 	(i)  	the date and time at which the IPE Contract was made or was notified to
the IPE;
	 
	 	(ii)  	the names of the IPE Members who entered the IPE Contract and the
Clearing Member(s) in whose names it was presented for registration; and
	 
	 	(iii)  	the commodity the quantity or number of lots, the delivery month or
prompt date and the price (or, in the case of an Option, the strike price and the
premium).

	2.3  	The IPE shall allow LCH access to the records referred to in sub-paragraph 2.2 above at all
reasonable times on reasonable notice and retain the records for a period of 3 years from the
date on which they were created.
	 
	3  	Information
	 
	3.1  	The IPE shall use its best endeavours to ensure that all information provided to LCH by the
IPE is accurate in all material respects.
	 
	3.2  	Subject to the express provisions of this Agreement, the IPE shall respond promptly to all
reasonable requests by LCH for information or decisions relating to this Agreement, to the
extent reasonably required by LCH for the purpose of performing its obligations under this
Agreement.

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	4  	Business Continuity
	 
	   	The IPE shall provide reasonable co-operation in the testing by LCH of the Business
Continuity Arrangements in accordance with paragraph 4 of Schedule 3 (Business Continuity
Arrangements).
	 
	5  	Official Quotations
	 
	   	The IPE shall calculate all official quotations required by the IPE Regulations. In
particular, the IPE shall each Business Day, at such times and in such manner as the
Parties may from time to time agree, notify LCH of the price or value which properly and
fairly represents the price or value of each commodity which is the subject of an IPE
Contract at the time as at which such price or value is given.
	 
	6  	Invoicing Back
	 
	   	Where an IPE Contract is to be invoiced back or closed out by resale under the IPE
Regulations or the LCH Regulations or the LCH Procedures, the IPE shall fix an invoicing
back price or premium (in the case of an Option) or resale price within 24 hours of being
requested in writing by LCH to do so.
	 
	7  	Personnel
	 
	   	The IPE shall provide appropriately qualified and experienced personnel for the purposes
of discussing matters which the IPE and LCH are from time to time required to discuss,
consult on and/or attempt to agree for the purposes of this Agreement.
	 
	8  	Assistance
	 
	   	The IPE shall provide LCH, on request, with reasonable assistance and cooperation to
assist LCH in understanding the requirements of the IPE Regulations and/or the IPE
System.

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Schedule 10

Information Technology and Data Protection

	1  	Euro
	 
	   	LCH will, to the extent to which it stores or processes monetary amounts or
currency-related data, conduct any relevant currency conversions in accordance with
applicable Law.
	 
	2  	IT Security Requirements
	 
	2.1  	Each Party shall be responsible for its own information technology security. LCH shall
maintain an appropriate information technology security policy approved by the LCH Board of
which all LCH staff shall be made aware. LCH’s staff shall be made aware of such aspects of
IPE’s technology security as necessary. LCH undertakes to disclose its information technology
security policy under terms of confidentiality to an appropriately qualified person nominated
by the IPE. Information technology risk assessments will be carried out in accordance with LCH
policy.
	 
	2.2  	Each Party will review on a regular basis its own access levels (including super user, system
administrator and similar rights) in relation to information technology security.
	 
	2.3  	Amendments to physical access rights to the LCH’s information technology locations will be
consistent with the LCH information technology policy.
	 
	3  	Technology Refresh
	 
	   	Without limiting any of its other obligations under this Agreement, LCH shall, and shall
procure that its sub-contractors shall, keep the resources (including the hardware and
software) used in providing the Services to the IPE (the “Technical Resources”) at a
technological level that is comparable with the level of technological advancement
generally being used by LCH in relation to other Exchanges or markets which are in the
nature of commodity and/or commodity derivative contracts and which, for the avoidance of
doubt, includes The London Metal Exchange Limited and the Euronext Group, except as
otherwise required by the IPE.
	 
	4  	Maintenance of CPS
	 
	4.1  	LCH shall procure that the CPS clearing processing system continues to be supported for a
period of 3 years from the date of this Agreement, unless otherwise agreed in writing by the
IPE.
	 
	4.2  	LCH agrees that:

	 	(i)  	It will consult with the IPE in the on-going development of its IT
strategy insofar as the same may affect the provision of the Services, including in
relation to any successor system to the CPS clearing processing system; and
	 
	 	(ii)  	It will, at the IPE’s election, make available to the IPE as part of the
Services such elements of its Clearing 21 system (or any other clearing processing

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	 	   	system which it may develop) as it may from time to time make available to other
Exchanges (including, for the avoidance of doubt, members of the Euronext Group).

	4.3  	LCH shall ensure that any successor system to the CPS clearing processing system achieves
levels of functionality, performance and reliability not materially lower than those provided
by CPS in the 12 month period prior to the date of this Agreement or, if higher, the 12 month
period prior to the adoption of such successor system.
	 
	5  	Provision of interface
	 
	   	LCH shall ensure that any successor, enhancement or replacement system for CPS shall
support an interface with the IPE System.
	 
	6  	Loss of Data
	 
	6.1  	In the event that any Transaction Data is either destroyed or lost or is sufficiently
degraded to be unusable solely by a breach of this Agreement by LCH, LCH shall be liable for
the cost, if any, of reconstitution of that data and/or the costs and expenses incurred by the
IPE in recreating any such data (which, for the avoidance of doubt, shall not be re-charged to
the IPE). Payment of such costs by LCH in accordance with this sub-paragraph 6.1 shall not
prejudice or affect any other right of action or remedy which shall have accrued, or shall
thereafter accrue, to the IPE.
	 
	6.2  	To the extent that data transmitted or processed in connection with the Services is either
destroyed or lost or is sufficiently degraded to be unusable solely by a breach of this
Agreement by the IPE (the “Corrupted Data”), the IPE shall be liable for the cost of
reconstruction of that data and/or the costs and expenses incurred by LCH in recreating such
data.
	 
	6.3  	Both Parties shall use their respective reasonable endeavours in accordance with Good
Industry Practice to prevent the introduction of any Virus to the IT System of the other Party
which shall include without limitation utilising commercially available anti-Virus detection
applications. In this sub-paragraph 6.3, “Virus” means any thing or device incorporated in, or
attached to, any software or data which may impair or otherwise adversely affect the operation
of any computer, prevent or hinder access to any program or data, impair the operation of any
program or the reliability of any data (whether by rearranging the same within the computer or
any storage medium or device or by altering or erasing the program or data in whole or in
part, or otherwise), including computer viruses and other similar things.
	 
	7  	Data Protection
	 
	   	In connection with the subject matter of this Agreement, both parties shall comply with
all applicable data protection Law and any notifications or registrations made by either
Party under such Law.

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Schedule 11

IPE Regulations

	1  	IPE Members
	 
	1.1  	In accordance with the IPE Regulations, the IPE may at any time introduce a new category or
class of IPE Member or alter or modify the rights, privileges and/or obligations of an
existing category or class of IPE Member; provided that where such introduction, alteration or
modification may affect the clearing of contracts by LCH, the IPE shall as soon as reasonably
practicable advise LCH of its proposal to make the introduction, alteration or modification
and shall thereafter consult with LCH.
	 
	1.2  	Without prejudice to the requirement to inform and consult in sub-paragraph 1.1 above, the
IPE shall give LCH not less than 14 days’ written notice of the date on which the IPE intends
to introduce a new category or class of IPE Member or to alter or modify the rights,
privileges or obligations of an existing category or class of IPE Member.
	 
	1.3  	LCH may, by written notice to the IPE (to be given no less than 7 days before the expiry of
the period specified in paragraph 1.2 above), decline to register any IPE Contract presented
by, or having any connection with, a new category or class of IPE Member if LCH reasonably
determines that the introduction of such new category or class of IPE Member will lead to any
change in the obligations of Clearing Members to any class or category of IPE Member or to
LCH, or that it will lead to an increase in the liabilities or obligations of LCH. This
paragraph is without prejudice to the rights of LCH under the LCH Regulations.
	 
	1.4  	If LCH declines pursuant to paragraph 1.3 above to register IPE Contracts presented by or
having any connection with a new category or class of IPE Member, the IPE shall be entitled to
make other arrangements for clearing in respect of such IPE Contracts.
	 
	1.5  	Neither LCH nor the IPE shall make any public announcement of the IPE’s intention to
introduce a new category or class of IPE Member or to alter or modify the rights, privileges
or obligations of an existing category or class of IPE Member until the period specified in
paragraph 1.2 above has elapsed unless such announcement or disclosure has been agreed to by
both LCH and the IPE.
	 
	1.6  	Paragraphs 1.1 to 1.5 above shall have effect without prejudice to sub-clause 6.1 of this
Agreement.
	 
	2  	Give-Ups
	 
	   	The IPE may, in accordance with the IPE Regulations, allow and require Clearing Members
to assume responsibility for IPE Contracts made by IPE Members who are not Clearing
Members. Such IPE Members shall be required to enter into a clearing agreement
substantially in the form (or one of the forms if more than one, as appropriate) in
current use at the date of this Agreement (copies of which have been signed by the
parties for the purposes of identification) or such other form proposed

-58-

 

	   	by LCH and approved in writing by the IPE, and the IPE shall not (without the consent of
LCH) cause or permit any change in IPE Regulations which is inconsistent with the terms
of such clearing agreement. Where the IPE Regulations do not make any provision for
clearing agreements, the foregoing sentence shall be of no effect.
	 
	3  	Dealing as Principal
	 
	   	In all dealings with LCH, Clearing Members shall be required to act as principals and the
IPE shall make it a provision of the IPE Regulations that all IPE Contracts entered into
in accordance with the IPE Regulations shall be made by an IPE Member as a principal with
any other IPE Member, and not as agent.

-59-EX-10.14:

 

Exhibit 10.14

14 JUN 2001

TRS – APPLICATION SERVICES AGREEMENT

KLegal

Solicitors

1-2 Dorset Rise

London EC4Y 8AE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain
information in this agreement has been omitted and filed separately
with the Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

 

Document History

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Version	 	 	Status	 	 	Date	 	 	Author	 	 	Comments	 
	 	V2

	 	 	Final
	 	 	25/04/01
	 	 	Bob Briggs
	 	 	Original Final version for contract signature	 
	 	V3

	 	 	Final
	 	 	16/05/01
	 	 	Andy Booth
	 	 	Added document history page number 2-a
Replaced page 39 with page 39-a to update
text in section three Service Measurements
Partial Availability, Whole Unavailability
of schedule two The Services — Service Level
Agreement, to show the correct definitions
of Partial Availability and Whole
Unavailability.	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

CONTENTS

	 	 	 
	CLAUSE
	 	PAGE

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	I.

	 	 	Interpretation
	 	 	 	1	 	 
	 	2.

	 	 	Schedules & SLA
	 	 	 	2	 	 
	 	3.

	 	 	Services
	 	 	 	3	 	 
	 	4.

	 	 	Services Enhancement
	 	 	 	3	 	 
	 	5.

	 	 	Hardware and Software
	 	 	 	4	 	 
	 	6.

	 	 	Premises
	 	 	 	5	 	 
	 	7.

	 	 	Contract Management
	 	 	 	5	 	 
	 	8.

	 	 	Intellectual Property Rights
	 	 	 	6	 	 
	 	9.

	 	 	Intellectual Property Rights Indemnity
	 	 	 	7	 	 
	 	10.

	 	 	Provider’s Warranties
	 	 	 	9	 	 
	 	11.

	 	 	IPE’s Obligations
	 	 	 	9	 	 
	 	12.

	 	 	Charges and Payment Terms
	 	 	 	11	 	 
	 	13.

	 	 	Limitation of Liability
	 	 	 	12	 	 
	 	14.

	 	 	Insurance
	 	 	 	12	 	 
	 	15.

	 	 	Service Credits
	 	 	 	12	 	 
	 	16.

	 	 	Term and Termination
	 	 	 	13	 	 
	 	17.

	 	 	Consequences of Termination
	 	 	 	15	 	 
	 	18.

	 	 	Data Security
	 	 	 	16	 	 
	 	19.

	 	 	Change Control Procedure
	 	 	 	16	 	 
	 	20.

	 	 	Regulatory Changes
	 	 	 	16	 	 
	 	21.

	 	 	Audit
	 	 	 	17	 	 
	 	22.

	 	 	Contract Escalation
	 	 	 	18	 	 
	 	23.

	 	 	Confidentiality
	 	 	 	19	 	 
	 	24.

	 	 	Publicity
	 	 	 	20	 	 
	 	25.

	 	 	Force Majeure
	 	 	 	21	 	 
	 	26.

	 	 	Notices
	 	 	 	22	 	 
	 	27.

	 	 	Sub-contracting and Assignment
	 	 	 	23	 	 
	 	28.

	 	 	Escrow
	 	 	 	24	 	 
	 	29.

	 	 	Entire Agreement
	 	 	 	24	 	 
	 	30.

	 	 	No Waiver
	 	 	 	24	 	 
	 	31.

	 	 	Jurisdiction
	 	 	 	24	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 

	 	 	SCHEDULES
	 	 	 	25	 	 
	 

 

 

THIS APPLICATION SERVICES AGREEMENT is made on 25 April, 2001

BETWEEN:

	1.  	The International Petroleum Exchange of London Limited, a company incorporated in England and
Wales whose registered office is at International House, 1 St Katharine’s Way, London E1W 1UY
(“IPE”)
	 
	2.  	LIFFE Services Company Limited, a company incorporated in England and Wales whose registered
office is at Cannon Bridge House, 1 Cousin Lane, London EC4R 3XX (“Provider”)

WHEREAS:

	(A)  	Provider has developed a computer system known as the Trade Registration System (“TRS”) which
is capable of providing a real-time computerised trade administration service;
	 
	(B)  	use of TRS has to date been supplied by Provider to IPE in accordance with the terms and
conditions of an agreement between Provider and IPE dated 26 April 1991 (“the LIFFE
Agreement”);
	 
	(C)  	with effect from the Commencement Date hereof, IPE and Provider have together mutually agreed
that the LIFFE Agreement shall be superseded and replaced by the terms and conditions of this
Agreement; and
	 
	(D)  	IPE may require additional development and integration deliverables in connection with TRS
which will be provided under the terms set out herein.

IT IS HEREBY AGREED as follows:

	1.  	Interpretation
	 
	1.1  	In construing this Agreement, unless otherwise specified:

	 	1.1.1  	references to clauses and schedules are to clauses of, and schedules to, this
Agreement;
	 
	 	1.1.2  	use of any gender includes the other genders;
	 
	 	1.1.3  	references to a “person” shall be construed so as to include any individual,
firm, company or other body corporate, government, state or agency of a state, local or
municipal authority or government body or any joint venture, association, partnership
or limited partnership (whether or not having separate legal personality);

Page 1

 

 

	 	1.1.4  	a reference to any statute or statutory provision shall be construed as a
reference to the same as it may have been, or may from time to time be, amended,
modified or re-enacted;
	 
	 	1.1.5  	any reference to a “day” shall mean a period of twenty-four (24) hours running
from midnight to midnight;
	 
	 	1.1.6  	references to times are to London times;
	 
	 	1.1.7  	references to “indemnifying” any person against any circumstance include
indemnifying and keeping him harmless from all actions, claims and proceedings from
time to time made against him and all loss, damage, payments, cost or expenses suffered
made or incurred by him as a consequence of that circumstance;
	 
	 	1.1.8  	headings and titles are for convenience only and do not affect the
interpretation of this Agreement;
	 
	 	1.1.9  	a reference to any English legal term for any action, remedy, method of
judicial proceeding, legal document, legal status, court, official or any legal concept
or thing shall in respect of any jurisdiction other than England be treated as a
reference to any analogous term in that jurisdiction;
	 
	 	1.1.10  	general words shall not be given a restrictive meaning by reason of the fact that
they are followed by particular examples intended to be embraced by the general words;
	 
	 	1.1.11  	references to “£” are to pounds sterling and reference to any amount in such currency
shall be deemed to include reference to an equivalent amount in the euro. For the
avoidance of doubt, the foregoing relates solely to sums payable hereunder and shall
not constitute any obligation upon Provider to ensure that the Services and/or the
System are compatible with the euro; and
	 
	 	1.1.12  	Provider and IPE agree that no clause in this Agreement is intended expressly or by
implication or other inference to purport to confer a benefit or right of action upon
any third party. No such third party (whether or not in existence at the date of
execution of this Agreement) is named or described herein. The Parties therefore intend
that this Agreement shall expressly exclude the Contract (Rights of Third Parties) Act
1999 (and any subsequent supplemental or modifying legislation) to the fullest extent
permissible at law.

	2.  	Schedules and SLA
	 
	2.1  	The schedules and SLA form part of this Agreement and shall have the same force and effect as
if expressly set out in the body of this schedules and SLA. To the extent that there is an
inconsistency between the terms of:

Page 2

 

 

	 	2.1.1  	the body of this Agreement and its schedules the terms of the body of this
Agreement shall prevail;
	 
	2.1.2  	the body of this Agreement and the SLA, the body of this Agreement shall
prevail; and
	 
	2.1.3  	any of the schedules, the following order of precedence shall prevail:

	 	2.1.3.1  	schedule 1 — Definitions;
	 
	 	2.1.3.2  	schedule 2 — Services; and
	 
	 	2.1.3.3  	all other schedules to this Agreement.

	3.  	Services
	 
	3.1  	This Agreement shall enter into effect on I May 2001. Provider shall provide the Services to
IPE with effect from the Commencement Date in accordance with the SLA and the terms and
conditions of this Agreement. Any variation or addition to the Services shall be provided on
the terms of this Agreement.
	 
	3.2  	If Provider fails to provide the Services or any aspect thereof in accordance with the SLA or
is aware (on a reasonable basis) of any such likely failure which has not yet occurred,
Provider shall promptly report each such failure (or potential failure) to the IPE.
	 
	3.3  	Provider shall document to a reasonable level of detail, without limitation, all processes,
work flows and methodologies used by it to deliver the Services.
	 
	3.4  	In the event that either Party becomes aware of any fault or defect in the System (or any
part or parts thereof), both Parties agree to forthwith notify the other thereof and to
provide all such details thereof as are available.
	 
	3.5  	It is accepted and agreed by the Parties hereto that Services provided to External IPE Member
Firms are excluded from the scope of this Agreement and its SLA and shall not be taken into
account for the purposes of determining whether Provider is in breach of its obligations
herein.
	 
	4.  	Services Enhancement
	 
	4.1  	Provider shall at all times during the Term of this Agreement be responsive to IPE’s diverse
and changing business needs and shall discuss with IPE whether these should result in
modifications to the Services which shall be effected using the Change Control Procedure or as
otherwise agreed between the Parties.
	 
	4.2  	Not later than three (3) months prior to the expiry of each year of the Term of this
Agreement the Parties shall in accordance with the Change Control Procedure agree a programme
for the implementation in the next year of any changes to the

Page 3

 

 

Services which IPE wishes to
make or Provider wishes to recommend during such year in light of changes to the business of
IPE or in technology. Nothing contained in this clause shall prevent the Parties from agreeing
a change to the SLA or this Agreement at any time during the Term.

	5.  	Hardware and Software
	 
	5.1  	Details of all equipment located at the IPE’s Premises used or required in relation to the
provision by the Provider of the Services are set out in schedule Three.
	 
	5.2  	Provider shall be responsible for procuring at its cost and expense all permissions,
licences, waivers, consents, registrations and approvals (other than those specified in clause
5.3, below) necessary to deliver, install, keep installed and operate any of the Provider
Hardware and Provider Software and shall indemnify IPE against all claims made by any third
party in relation to the use of the Provider Hardware and Provider Software in relation to the
provision of the Services provided that:

	 	5.2.1  	IPE shall promptly notify Provider in writing of any claim or action of which it has notice;
	 
	 	5.2.2  	IPE shall not make any admission as to liability or agree to any settlement of
or compromise any claim or action without the prior written consent of Provider which
shall not be unreasonably withheld or delayed; and
	 
	 	5.2.3  	Provider shall, at its own request and expense, be entitled to have the
conduct of or settle all negotiations and litigation arising from any claim or action
and IPE shall, at the request and expense of Provider, give all reasonable assistance
in connection with such negotiations and litigation.

	5.3  	IPE shall be responsible for procuring at its cost and expense all necessary consents from
its landlord (where necessary under the terms of any applicable lease) for the physical
installation of the Provider Hardware at the IPE Premises, including all permissions,
licenses, waivers, consents, registrations and approvals relating to the use of the IPE
Premises for the installation of the Provider Hardware.
	 
	6.  	Premises
	 
	6.1  	IPE shall allow Provider access to the IPE Premises at all reasonable times and upon
reasonable prior notice for the purposes of the Supplier performing its obligations hereunder
in accordance with the terms of this clause 6.1 and will provide or procure the provision of
all services to the IPE Premises necessary for the purposes of this Agreement. Provider will
be given such access to the IPE Premises as IPE’s licensee and the Parties agree that no lease
or tenancy or agreement for the same or any relationship of landlord and tenant shall be
created by this Agreement. Provider shall have no right of exclusive occupation

Page 4

 

 

and IPE shall
be entitled to designate at will those areas of the IPE Premises to which Provider shall have
access.

	7.  	Contract Management
	 
	7.1  	Provider shall assign a Service Delivery Manager with responsibility for this Agreement and
for liaising with the IPE’s Contract Manager.
	 
	7.2  	IPE shall assign a Contract Manager with responsibility for this Agreement and for liaising
with the Service Delivery Manager.
	 
	7.3  	The Parties shall ensure that the Service Delivery Manager and the Contract Manager meet with
the frequency identified in schedule Five to discuss the performance of this Agreement.
	 
	7.4  	Neither Party shall change its Service Delivery Manager or Contract Manager, as applicable,
without notifying the other Party in writing in advance of the change (save in situations
where advance notice of such change is unreasonable or impracticable in the circumstances, in
which case notice of any such change shall be given as soon as reasonably practicable).
	 
	7.5  	Provider and IPE shall comply with the procedures for monitoring the progress of the Services
as set out in schedule Five. This will include regular review meetings attended by the Service
Delivery Manager and Contract Manager as appropriate, and submission of reports to the
Governance Committee, as further specified in schedule Five.
	 
	8.  	Intellectual Property Rights
	 
	8.1  	The Intellectual Property Rights in any modifications and enhancements to Existing Materials
(as defined below) will remain vested in Provider.
	 
	8.2  	In respect of programs, specifications, designs or reports (including Data) which are
pre-existing or are an adaptation of or derived from existing materials (together “Existing
Materials”) the ownership of the Intellectual Property Rights in such Existing Materials
remains with the owner thereof.
	 
	8.3  	For the avoidance of doubt, all new materials generated by either Party during the course of
the Services and all Intellectual Property Rights therein shall belong to the Party generating
such new materials and, shall to the extent they are not already Existing Materials, be
treated as Existing Materials.
	 
	8.4  	Neither Party shall delete proprietary information or trade mark notices if any appear on any
software or documentation supplied to it by the other at any time. Further, both Parties shall
ensure that all copies of software or documentation created or supplied by them under the
provisions hereof shall carry a copyright notice.

Page 5

 

 

	8.5  	Provider hereby grants to IPE (which for the purposes of this clause only shall be deemed to
include the IPE Group and the Members) with effect from the Commencement Date and during the
Term the following licences in accordance with the provisions of this Agreement:

	 	8.5.1  	a royalty-free non-exclusive licence for IPE to use any modifications and enhancements to Existing Materials from the date of their creation; and
	 
	 	8.5.2  	a royalty-free non-transferable licence for the Term to use its Existing Materials strictly for the purposes of this Agreement.

	8.6  	IPE hereby grants to Provider with effect from the Commencement Date and during the Term a
royalty-free non-transferable licence to use IPE’s Existing Material (including for the
avoidance of doubt ETS) strictly for the purposes of this Agreement.
	 
	9.  	Intellectual Property Rights Indemnity
	 
	9.1  	Provider shall indemnify IPE and IPE shall indemnify Provider from and against all actions,
claims, demands, proceedings, losses, damages, costs, charges and expenses arising out of or
in connection with any claim or action that the use or possession within the United Kingdom by
one Party of any product, Service or TRS Functionality Change supplied or licensed by the
other Party under the terms of this Agreement infringes the intellectual property and other
rights (including without limitation copyright, patents, trade secrets and database rights) of
any third party (“Infringing Item”), provided that:

	 	9.1.1  	the indemnified Party shall promptly notify the indemnifying Party in writing of any claim or action of which it has notice;
	 
	 	9.1.2  	the indemnified Party shall not make any admission as to liability or agree to
any settlement of or compromise any claim or action without the prior written consent
of the indemnifying Party which shall not be unreasonably withheld or delayed; and
	 
	 	9.1.3  	the indemnifying Party shall, at its own request and expense, be entitled to
have the conduct of or settle all negotiations and litigation arising from any claim or
action and the indemnified Party shall, at the request and expense of the indemnifying
Party, give all reasonable assistance in connection with such negotiations and
litigation.

	9.2  	In the event of such claim or action the indemnifying Party may, at its option:

	 	9.2.1  	procure for the indemnified Party, at no cost to the indemnified Party, the
right to continue to use the Infringing Item; or
	 
	 	9.2.2  	replace or modify the Infringing Item or any part or parts thereof at no cost
to the indemnified Party, so that the use of the System by the indemnified

Page 6

 

 

Party no longer infringes such Intellectual Property Right, provided that there is no reduction
in performance and that the replacement or modification has the same or improved
functionality in all material respects as the Infringing Item.

	9.3  	The indemnifying Party shall, if it is Provider, act at all times in such a way as to
minimise interruption and disruption to the operation of the IPE business and if it is IPE,
act in such a way as to minimise interruption and disruption in the provision of the Services
by Provider as the case may be.
	 
	9.4  	The indemnifying Party shall have no liability for any claim for breach of any Intellectual
Property Right based on:

	 	9.4.1  	any alteration, amendment or modification to the relevant Infringing Item or
any part or parts thereof made by the indemnified Party without the prior written
agreement of the indemnifying Party; or
	 
	 	9.4.2  	where the indemnifying Party is the Provider, use of any material in the
System or in any part or parts thereof supplied by or incorporated at the specific
request of IPE, PROVIDED THAT:

	 	9.4.2.1  	such material is not owned or licensed by Provider;
	 
	 	9.4.2.2  	Provider has a reasonable and justifiable cause to believe that such
material is, or may reasonably be expected to be, harmful in the System
environment; and
	 
	 	9.4.2.3  	Provider notifies IPE in writing of the matters in clause 9.4.2.2 above no
later than two (2) business days following such request by IPE.

	9.5  	The provisions of this clause 9 shall survive termination of this Agreement for any reason.
	 
	10.  	Provider’s Warranties
	 
	10.1  	Provider warrants to IPE that:

	 	10.1.1  	it shall perform the Services with Reasonable Skill and Care;
	 
	 	10.1.2  	the Services and/or TRS Functionality Changes will be capable on an ongoing basis of
supporting the requirements of IPE as such are identified in the SLA and pursuant to
the Change Control Procedure (as the case may be);
	 
	 	10.1.3  	it shall maintain and employ throughout the term of this Agreement a sufficient
number of personnel with sufficiently detailed and reasonable

Page 7

 

 

knowledge and experience to enable it to perform its obligations under this
Agreement;

	 	10.1.4  	it shall devote senior management time to the provision of the Services and/or TRS
Functionality Changes as is consistent with the standard of Reasonable Skill and Care;
	 
	 	10.1.5  	it will apply the security safeguards in the provision of the Services which are
specified further in schedule 9;
	 
	 	10.1.6  	subject to any agreement to the contrary between the Parties, TRS Functionality
Changes will perform all the functions which have been specified in the relevant TRS
Functionality Change Specification;
	 
	 	10.1.7  	subject to any agreement to the contrary between the Parties, where the relevant TRS
Functionality Change Specification so requires applicable TRS Functionality Changes
shall not have an injurious effect on the operation of any other TRS Functionality
Changes or of such other software or hardware used by the IPE with which they are
intended to interact and will be compatible with (as further specified in the relevant
TRS Functionality Change Specification) such relevant software or hardware;
	 
	 	10.1.8  	it shall provide to IPE upon reasonable prior notice (which shall not in any event be
less than five (5) Working Days) upon its standard applicable terms and conditions,
such specification as IPE shall reasonably require in relation to the interface of TRS
with ETS;
	 
	 	10.1.9  	subject to any agreement to the contrary between the Parties, any requirement for a
specific interface or integration with other hardware or software or other systems will
be defined in the relevant TRS Functionality Change Specification;
	 
	 	10.1.10  	it has the full power and authority to enter into this Agreement and to perform all
of its obligations under this Agreement;
	 
	 	10.1.11  	to the extent that the Provider is required as part of the Services to procure
ongoing or periodic Licences and/or approvals subsequent to the Commencement Date, it
shall maintain such Licences and Approvals; and
	 
	 	10.1.12  	to insure comprehensively such of the Provider Hardware that is located at the
Provider Premises for the full replacement value thereof with a reputable insurance
company against all normal insurable risks, including loss or damage from whatever
cause and third party liabilities from and including the Commencement Date until such
time as this Agreement is terminated or expires. As at the Commencement Date

     

Page 8

 

hereof, the Parties confirm that Provider’s insurance arrangements are
satisfactory and meet the requirements of this clause.

	10.2  	Provider hereby acknowledges that IPE has entered into this Agreement in reliance on each of
the warranties set out in this clause 10.
	 
	11.  	IPE’s Obligations
	 
	11.1  	The Parties together confirm that the sub-clauses within clause 11 (save for clauses 11.1A,
11.3 and 11.5) are not intended to be conditions of this Agreement and Provider shall not be
entitled to terminate this Agreement for IPE’s breach or non-performance thereof. However, in
the event that a breach or non-performance (as the case may be) by IPE of its obligations
under this Agreement (including the schedules) causes a consequent breach or non-performance
by Provider of its obligations to IPE, Provider shall be excused from performance of its
relevant obligations to the extent that such failure in performance or breach is caused by or
is directly attributable to the IPE’s non-performance or breach. A breach by IPE of its
obligations contained within clauses 11.1A, 11.3 and/or 11.5 (to the extent specified in
clause 16.4.4) may entitle Provider to terminate this Agreement pursuant to clause 16.4.4.
Subject to the foregoing, IPE hereby agrees with and undertakes to Provider:
	 
	11.1A   	to use the System and to use reasonable endeavours to procure that the Member Firms use the
System and all parts thereof in accordance with the Operating Manuals, subject to Provider
supplying such Operating Manuals and updates thereto to IPE from time to time;
	 
	11.2  	to keep the Provider Hardware clean;
	 
	11.3  	not to move the Provider Hardware or any part or parts thereof from the IPE Premises without
the prior written consent of Provider;
	 
	11.4  	to establish and maintain such accommodation, environment, electricity supply and other
installations and facilities for the Provider Hardware as is specified in schedule Four to
this Agreement;
	 
	11.5  	to use all reasonable endeavours to procure that its officers, employees, agents and
representatives refrain from such acts or omissions which damage or impair or might reasonably
be expected to damage or impair the System or any part or parts thereof;
	 
	11.6  	save as otherwise contemplated by the Services or the Operating Manuals or as further
specified in the SLA or via the Change Control Process, not to add to or combine with the
System or any part or parts thereof any other equipment or things including without limitation
any computer hardware or software;
	 
	11.7  	save as otherwise contemplated by the Services or the Operating Manuals or as further
specified in the SLA or via the Change Control Process, not to interfere or

     

Page 9

 

tamper with, alter, amend or modify the System or any part or parts thereof; not to copy any
computer software included within the System or any part or parts thereof except as is
necessary to use the System in accordance with the provisions of this Agreement; and not to
reverse compile or disassemble any such computer software; nor purport to do any of the same
or permit or purport to permit any of the same to be done except to the extent permitted by
law;

	11.8  	that title in the System and all parts thereof and the Operating Manuals shall remain vested
in Provider and IPE shall have no right, title or interest therein except for quiet possession
and the right to use the System and the Operating Manuals in accordance with the terms and
conditions of this Agreement;
	 
	11.9  	that the title in the System or any part or parts thereof shall not pass to IPE by reason of
the same being attached to or fixed by any means whatsoever to or resting by its own weight
upon any land, building or structure;
	 
	11.10  	not to create or allow to be created any lien or encumbrance on the System or any part or
parts thereof nor to purport to act as owner of the System in such a manner which might
reasonably be expected to result in the System or any part or parts thereof being confiscated,
seized, requisitioned, taken in execution, impounded or otherwise taken from the possession or
control of IPE;
	 
	11.11  	not to remove or deface any serial numbers, identity plates or marks whatsoever, including
without limitation those of Provider, the Supplier or the Manufacturer, from the System or any
part or parts thereof for any reason whatsoever;
	 
	11.12  	to insure comprehensively such of the Provider Hardware that is located at the IPE Premises
for the full replacement value thereof with a reputable insurance company against all normal
insurable risks, including loss or damage from whatever cause and third party liabilities from
and including the date on which such Provider Hardware (or part of parts thereof) is delivered
to IPE until such time as such Hardware is either returned to or repossessed by Provider. As
at the Commencement Date hereof, the Parties confirm that IPE’s insurance arrangements are
satisfactory and meet the requirements of this clause;
	 
	11.13  	to notify Provider as soon as is reasonably practicable and from time to time in the event
that any person becomes, or ceases to be, a Member Firm;
	 
	11.14  	that risk in such of the Provider Hardware as is located at the IPE Premises shall pass or
be deemed to have passed to IPE from the date of delivery of such Provider Hardware to IPE or
(if earlier) the date upon which such Provider Hardware comes into the possession or control
of IPE and shall remain in IPE until such Provider Hardware is repossessed by Provider or
delivered by IPE to the Provider Premises (or such other location as the Provider may
reasonably request);
	 
	11.15  	IPE warrants to Provider that it has the full power and authority to enter into this
Agreement and to perform all of its obligations under this Agreement; and

     

Page 10

 

	11.16  	to comply with the dependencies set out in schedule Thirteen.
	 
	12.  	Charges and Payment Terms
	 
	12.1  	In consideration of Provider providing the Services in accordance with the provisions of this
Agreement IPE shall pay to Provider the Charges of the amounts calculated on the basis set out
in schedule Six. The Charges for any Changes commissioned hereunder shall be in accordance
with the Fee Rates.
	 
	12.2  	Commencing on the Commencement Date IPE shall pay the Service Charges (as set out in schedule
Six) which will be invoiced by Provider by quarterly instalments in advance at the start of
each Service Period and such sums shall be payable by IPE thirty (30) days after receipt of
each applicable Service Charge invoice provided a correct and properly due invoice has been
received by lPE. All other Charges due to Provider under this Agreement are (unless expressly
agreed to the contrary) payable by IPE within thirty (30) days from the date of receipt of a
correct and properly due invoice, together with such supporting documentation as is mutually
agreed from time to time will be supplied by Provider with each invoice as a pre-condition of
payment.
	 
	12.3  	Service Credits will be accounted for in accordance with schedule Seven.
	 
	12.4  	The Charges are inclusive of all costs, but not expenses, of Provider providing the Services.
For the avoidance of doubt, Provider shall not be entitled to any expenses unless they have
been pre-agreed in writing by IPE in advance.
	 
	12.5  	In respect of the Charges for the implementation of any approved change to the Services
pursuant to the Change Control Procedure, Provider shall on request promptly supply IPE with
information regarding the time worked, the seniority of staff employed, and the applicable Fee
Rates including breakdown of fees for each line of service and such relevant supporting
documentation as shall be agreed between the Parties from time to time to check the
calculation of such Charges.
	 
	12.6  	IPE may suspend payment of whole or part of invoices in dispute, but for the avoidance of
doubt shall continue to pay those sums not in dispute. Exercise of this clause may only be
invoked where IPE has reasonable and bona fide grounds to dispute such payment. IPE shall give
formal written notice to Provider that it is suspending payment hereunder. If IPE notifies
Provider under this clause 12.6, Provider shall continue to provide the Services applying the
contract escalation procedure in clause 22 in order to resolve such dispute, following which
resolution Provider shall either withdraw the disputed invoice (or part thereof) or have the
right to charge interest commencing thirty (30) days from the invoice date without further
notice at the rate of four (4) per cent per annum over the base rate of Barclays Bank plc for
the time being on sums unpaid and subsequently found to have been due.

     

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	13.  	Limitation of Liability
	 
	13.1  	Nothing in this Agreement shall exclude or limit the liability of either Party for death or
personal injury resulting from the negligence of that Party or its directors, officers,
employees, contractors or agents or fraudulent misrepresentation.
	 
	13.2  	The aggregate liability of either Party for or in respect of any loss or damage suffered by
the other under or in connection with this Agreement including, without limitation, the
design, development, implementation of the System or the provision of the Services shall be
limited to [***] £[***].
	 
	13.3  	Neither Party shall be liable to the other, whether for negligence, breach of contract,
misrepresentation or otherwise, for loss of profit (whether direct or consequential), indirect
or consequential damage, including, without limitation, loss of profit, goodwill, business
opportunity or anticipated saving.
	 
	13.4  	Provider shall be under no liability to IPE whatsoever for any dishonest, fraudulent or
malicious act or omission in relation to the System or any part or parts thereof other than by
the Provider, its employees, agents, sub-contractors or any person otherwise under the
Provider’s direction and/or control.
	 
	13.5  	Where the liability of Provider (including without limitation any liability in respect of its
officers, employees, agents or representatives) has been excluded or restricted under this
Agreement IPE agrees and undertakes that it shall not bring any claim against any officers,
employees, agents or representatives of Provider or join such officers, employees, agents or
representatives as Parties to any claim such that the liability of such officers, employees,
agents or representatives would be greater than the liability of Provider under this
Agreement.
	 
	13.6  	For the avoidance of doubt this clause is not intended to, and shall not, constitute a waiver
of any rights of one Party against the other Party with respect to any matter that is
unrelated to this Agreement.
	 
	14.  	Insurance
	 
	14.1  	Provider warrants and represents to IPE that it has the benefit of policies of insurance with
reputable insurers authorised to act as such by the Financial Services Authority pursuant to
the Insurance Companies Act 1982 which are sufficient to cover its responsibilities and
obligations under this Agreement including, inter alia, in respect of loss or damage to
tangible property and professional indemnity for amounts suitable to cover such liability.
	 
	15.  	Service Credits
	 
	15.1  	Service Credits shall be leviable in respect of any breach of the Service Levels specified in
schedule Seven save in respect of any breach of the Service Levels which is attributable to a
Member Firm using software which has not been

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

     

Page 12

 

certified by Provider as conforming with the Service. Provider shall not be deemed to be in
default of its Service Levels under this Agreement should any failure by Provider to comply
with its obligations under this Agreement be due to such use of non-conforming software
which has not been certified by Provider as conforming. Provider shall ensure that a
procedure for Provider to grant conformance certificates is introduced, and IPE shall ensure
that Member Firms have submitted non-conforming software for testing in accordance with that
procedure, within a period of six (6) months from the Commencement Date. In any event
Provider shall not unreasonably withhold or delay certification of any such non-conforming
software.

	15.2  	Both Parties together acknowledge and agree that the Service Credits specified in schedule
Seven are a genuine pre-estimate of the specific loss which may be suffered by the IPE. Except
in circumstances where IPE terminates this Agreement under clause 16.3.2 or clause 16.5,
Service Credits shall be IPE’s only financial remedy in respect of a failure by the provider
to meet the specified Service Levels.
	 
	16.  	Term and Termination
	 
	16.1  	The Term of this Agreement shall be the Initial Period unless terminated earlier as provided
by clauses 16.3 and 16.4 of this Agreement.
	 
	16.1A   	At the end of the Initial Period this Agreement shall continue unless terminated by either
Party serving a notice upon the other giving not less than twelve (12) months’ notice (such
notice to expire no earlier than the end of the Initial Period).
	 
	16.2  	Upon effective termination of this Agreement for whatever reason IPE shall forthwith cease
use of the System and all parts thereof.
	 
	16.3  	IPE’s rights of termination

	 	16.3.1  	IPE shall be entitled, subject to payment of the Break Fee, to terminate this
Agreement after the expiry of a period of one (1) year from the Commencement Date by
giving Provider not less than twelve (12) months’ prior written notice.
	 
	 	16.3.2  	Without prejudice to its other rights and remedies, IPE shall be entitled to
terminate this Agreement forthwith (or at such other time as IPE may specify) by notice
in writing to Provider if Provider is in material or persistent breach amounting to
material breach of any of the provisions of this Agreement and such breach has not, if
capable of remedy, been remedied within thirty (30) days of receipt by Provider of
written notice from IPE requiring such remedy.
	 
	 	16.3.3  	Provider shall notify IPE in writing of any change of control of Provider, as defined
by Section 161 of the Capital Allowances Act 1990. IPE may at any time within a period
of five (5) months from receipt of such notice from

     

Page 13

 

Provider by a further notice in writing to Provider terminate the Agreement as from
the date of receipt by Provider of the IPE’s notice. A failure by IPE to exercise
any termination right under this clause 16.3.3 shall not prevent IPE from
terminating the Agreement due to a further change of control of Provider at any time
in the future.

	16.4  	Provider’s Right of Termination

	 	16.4.1  	During the second and third twelve (12) month periods following the Commencement
Date, Provider shall be entitled to terminate this Agreement by giving the IPE not less
than two (2) years’ prior written notice (such notice to expire no later than the end
of the Initial Period).
	 
	 	16.4.2  	Provider shall be entitled to terminate this Agreement by two (2) weeks’ notice in
writing to IPE if IPE has failed to pay, in accordance with this Agreement, a due and
payable Charge which has not been disputed in accordance with the procedure in clause
12.6.
	 
	 	16.4.3  	Notwithstanding the foregoing clause 16.4.2, Provider shall not be entitled to
terminate this Agreement in respect of any undisputed due and payable Charge unless it
has first indicated its intention to terminate by way of written notice issued in
accordance with the following procedure: Provider will prepare notice to the IPE’s
Chief Financial Officer detailing the Service Charge invoice(s) which have become
overdue and forward such notice to the address stipulated in clause 26.2. On receipt of
such written notice, the IPE will either make payment as soon as reasonably practicable
and in no event longer than five (5) Working Days (from receipt of such notice) or
invoke the dispute resolution procedure in clause 12.6.
	 
	 	16.4.4  	Provider may terminate this Agreement by two (2) weeks’ notice in writing if IPE is
in breach of its obligations in clauses 11.1A; 11.3 and/or 11.5; has failed to rectify
such breach within thirty (30) days of being informed by Provider; and such continued
breach renders it impossible for Provider (on a reasonable objective basis) to continue
to provide the Services.

	16.5  	Mutual Rights of Termination

	 	16.5.1  	Without prejudice to its other rights and remedies, either Party shall be entitled to
terminate this Agreement forthwith in writing to the other (and shall be entitled to
receive reasonable information from the other Party on a prompt and reasonable basis to
enable it to determine whether any of the below circumstances apply to the other Party)
if:

	 	16.5.1.1  	any procedure is commenced with a view to the winding-up or dissolution
of the other Party and that procedure is not terminated or discharged within
thirty (30) days;

     

Page 14

 

	 	16.5.1.2  	any procedure is commenced with a view to the appointment of an
administrator, receiver, administrative receiver or trustee in bankruptcy in
relation to either Party or all or substantially all of its assets and that
procedure is not terminated or discharged within thirty (30) days;
	 
	 	16.5.1.3  	the holder of any security over all or substantially all of the assets of
the other Party takes any step to enforce that security and that enforcement
is not discontinued within thirty (30) days;
	 
	 	16.5.1.4  	all or substantially all of the assets of the other Party are subject to
attachment, sequestration, execution or any similar process and that process
is not terminated or discharged within thirty (30) days; or
	 
	 	16.5.1.5  	the other Party is unable to pay its debts as they fall due or enters
into a composition or arrangement with its creditors or any class of them.

	17.  	Consequences of Termination

	17.1  	Upon a termination of this Agreement (howsoever occasioned) IPE may require Provider to
comply with the following provisions and Provider hereby undertakes to comply promptly and
without delay with such requirements in accordance with a timetable agreed between the
Parties:

	 	17.1.1  	to deliver up all or any security copies of the Data then in Provider’s possession
and to deliver any of the Data on the same format as at the date of termination;
	 
	 	17.1.2  	to remove all electronically held IPE information from its systems by a mutually
agreed date, including (but without limitation) that all disk-based information (and
all other storage media held by Provider and relating to the provision of the Services)
is to be purged and the disks reformatted. Upon written notice by the IPE served
pursuant to clause 26 hereof, Provider shall certify to the IPE that this has been
done;
	 
	 	17.1.3  	to provide such exit management and further assistance as may be required in
accordance with the Exit Management Plan or otherwise agreed between the Parties.

	17.2  	Subject to Provider having given fourteen (14) days’ notice to IPE requesting return of the
Provider Hardware and such Provider Hardware not having been returned to Provider, to allow
Provider (or its authorised agents) to recover from the IPE Premises the Provider Hardware and
any other Equipment in the possession or under the control of IPE.

     

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	17.3  	In relation to the direct costs reasonably and necessarily incurred by Provider in performing
the work under clause 17.1 above, these shall be chargeable at the Fee Rates together with
Provider’s reasonable administrative expenses save where IPE has terminated this Agreement
pursuant to clause 16.3.2 where such assistance shall be provided free of charge and where
termination is pursuant to clauses 16.3.3 or 16.5 in which case such assistance shall be borne
equally between the Parties.
	 
	18.  	Data Security
	 
	18.1  	In the event of a loss, corruption or destruction of Data attributable to Provider’s failure
to perform its obligations under this Agreement Provider shall take such steps which someone
using Reasonable Skill and Care would take to reconstruct any such lost, corrupted or
destroyed Data without charge for the Provider work involved in such reconstruction, subject
to IPE having taken all reasonable steps within its control as receiver of the Services to
facilitate such reconstruction. If Provider is unable to reconstruct such lost, corrupted or
destroyed Data by taking such steps, Provider shall indemnify IPE its reasonable costs
incurred in reconstructing such data. If a loss, corruption or destruction is materially
attributable to IPE’s negligence (or the act or omission of a third party who is not a member
of the Provider’s personnel), IPE shall have the option to direct and control the conduct of
the reconstruction process by Provider and in such a case shall reimburse Provider at the Fee
Rates for its effort in investigating and reconstructing the lost, corrupted or destroyed
data.
	 
	19.  	Change Control Procedure
	 
	19.1  	Any change to the Services specified herein (“a Change”) shall be in accordance with the
Change Control Procedure appended as schedule Eight.
	 
	19.2  	IPE shall not be bound to Provider for payment in respect of any Change save to the extent
that the Change Control Procedure has been followed.
	 
	19.3  	Except as otherwise expressly permitted by this Agreement, no change to its terms will be
effective unless it is in writing and signed by an authorised signatory of each Party.
	 
	20.  	Regulatory Changes
	 
	20.1  	Provider shall be responsible, at a pro-rated cost in accordance with schedule Eight and
pursuant to the Change Control Procedure under clause 19 for making such modifications as are
necessary to take into account any changes to existing financial services legislation and
regulations or any such new legislation and regulations which have an impact (either directly
or indirectly) on the provision of the Services or any part thereof and which are outside the
scope of clause 20.2 below.

     

Page 16

 

	20.2  	Provider shall also be responsible, at IPE’s expense, for making such modifications as are
necessary to take into account of:

	 	20.2.1  	any changes to existing gas and/or electricity trading legislation and statutory
regulations or any such new legislation and regulations relating specifically to the
gas and petroleum trading industry notified to it by the IPE and which have an impact
(either directly or indirectly) to the provision of the Services or any part thereof;
and/or
	 
	 	20.2.2  	any changes which are deemed necessary by IPE or the Financial Services Authority to
maintain Market integrity.

	20.3  	The changes referred to above in clauses 20.1 and 20.2 (“Regulatory Changes”) shall be
implemented by way of the Change Control Procedure. For the avoidance of doubt, Provider shall
not be entitled to decline to perform any Regulatory Change deemed necessary by the IPE.

	21.  	Audit
	 
	21.1  	IPE or the Financial Services Authority (for the purposes of this clause references to “IPE”
shall be deemed to include the Financial Services Authority) shall have the right, from time
to time and upon seven (7) Working Days written notice to Provider (or such shorter period as
the Financial Services Authority may require in any particular circumstances), to conduct an
audit of the compliance by Provider with its obligations under this Agreement and the changes
made by Provider in performing such obligations (an “Audit”). The Audit must be in relation to
the assessment of the proper amount of any payment made or to be made in relation to any
Services which are performed on a time and materials basis or to the performance by Provider
of its obligations under this Agreement (“Audit Matters”). The Audit may be conducted by such
professional auditors or advisers as IPE may decide to appoint and notify to Provider, save
that no such auditors or advisers may be employed by IPE (except with the prior written
approval of Provider) if they are competitors of Provider or provide services to a third party
to develop a system competing with the LIFFE Connect system (and for these purposes, this
includes Arthur Andersen & Co. and Accenture) or if their engagement would conflict with their
duties to Provider. Where the Audit relates to Services performed on a time and materials
basis, Provider shall not be obliged to disclose more than the names of its employees and/or
sub-contractors performing such time and materials Services, their grades and their
timesheets.
	 
	21.2  	For the avoidance of doubt, the categories of information that may be sought under this
provision shall only be that which is necessary for the reasonable assessment of the Audit
Matters specified in any notice issued by IPE under clause 21.1 above.
	 
	21.3  	Provider shall provide to IPE and its advisers such assistance and facilities and access to
such premises, accounts, invoices, documents and information as it

     

Page 17

 

shall reasonably require for the purposes of any Audit. Provider shall provide IPE with
copies of relevant documents and information in such form as lPE or its advisers shall
reasonably require, but only to the extent that such documents and information relate to the
Audit Matters. IPE shall not have access to any accounts or invoices other than those
referred to in clause 21.1.

	21.4  	IPE shall be entitled to conduct an Audit at such times as it may reasonably require subject
to a maximum of one (1) Audit in any six (6) month period, provided that this maximum shall
not apply (and neither shall the advance notice period specified in clause 21.1) where IPE
bona fide believes that there is a material non-compliance or continuing non-compliance (as
the case may be) by Provider with any of its obligations under this Agreement which an Audit
may detect or of which an Audit may provide details.
	 
	21.5  	IPE shall:

	 	21.5.1  	use its reasonable endeavours to minimise any disruption to Provider’s operations or
the performance of the Services caused by an Audit and to make good any such disruption
which may be so caused; and
	 
	 	21.5.2  	ensure that all of the employees and agents of IPE are under a duty of confidence and
sign confidentiality agreements with Provider on the same terms (mutatis mutandis) as
this Agreement in relation to any information disclosed or made available to them by
Provider for the purpose of that Audit. For the avoidance of doubt, it has been agreed
between Provider and IPE that any auditors of IPE shall not be hindered or prevented in
the performance of their professional duties by this obligation.

	22.  	Contract Escalation
	 
	22.1  	Any question or difference which may arise concerning the construction, meaning or effect of
this Agreement or any matter arising out of or in connection with this Agreement shall in the
first instance be referred to the first representatives of the Parties set out in clause 22.2
for discussion and resolution. If the matter is not resolved by the first representatives
within five (5) Working Days, the matter will be referred to the second representatives
referred to in clause 22.2 who must meet within five (5) Working Days to attempt to resolve
the matter. If the matter is not resolved by the second representatives within five (5)
Working Days, the matter will be referred to the third representatives who must meet within
five (5) Working Days to attempt to resolve the matter. If the matter is not resolved at that
meeting, then the provisions 22.3 shall apply.
	 
	22.2  	The nominated representatives and senior representatives of each of the Parties referred to
in 22.1 are:

     

Page 18

 

	 	 	 	 	 
	 	 	Provider	 	IPE
	First Representative

	 	Service Delivery Manager
	 	Contract Manager
	Second Representative

	 	Chief Information Officer
	 	Head of IT Operations
	Third Representative

	 	Chief Executive Officer
	 	Chief Executive Officer

or, in any such case, such other senior office holder of a Party as that Party may notify in
writing from time to time to the other Party.

	22.3  	Any dispute which cannot be resolved by the Parties pursuant to clause 22.1 shall be resolved
as follows:

	 	22.3.1  	if the dispute is of a technical nature, and the Parties so agree, then it shall be
referred for final settlement to an expert nominated jointly by the Parties or, failing
such nomination within ten (10) Working Days after one Party’s request to the other
therefor, nominated at the request of either Party by the President for the time being
of the British Computer Society. Such expert shall be deemed to act as an expert and
not as an arbitrator. The expert’s decision shall be final and binding on the Parties
and his fees for so acting shall be borne by the Parties in equal shares or as the
expert shall determine. Notwithstanding the foregoing, if the expert shall fail to come
to a decision within ninety (90) days of his appointment the dispute shall be
determined in accordance with clause 22.3.2; and
	 
	 	22.3.2  	in any other case, the dispute shall be submitted to the exclusive jurisdiction of
the courts of England.

	22.4  	Notwithstanding the foregoing provisions of this clause 22, nothing in this Agreement shall
prevent a Party from applying to the court for interim relief pending the resolution of a
dispute in accordance with the provisions of this Agreement.
	 
	22.5  	Notwithstanding the foregoing provisions of this clause 22, nothing in this Agreement shall
prevent a Party, with the consent of the other Party from attempting to settle any dispute
arising out of this Agreement by mediation in accordance with the Centre for Dispute
Resolution (CEDR) Model Mediation Procedure.
	 
	23.  	Confidentiality
	 
	23.1  	Each Party undertakes in respect of Confidential Information for which it is the recipient:
	 
	  	23.1.1   to treat such Confidential Information as confidential;

     

Page 19

 

	 	23.1.2  	not without the disclosing Party’s prior written consent communicate or disclose any
part of such Confidential Information to any person except:

	 	23.1.2.1  	only to those employees, agents, sub-contractors and other suppliers on a
need to know basis who are directly involved in the Services; or
	 
	 	23.1.2.2  	the recipient’s auditors, professional advisers and any other persons or
bodies having a legal right or duty to have access to or knowledge of the
Confidential Information in connection with the business of the recipient;

	 	23.1.3  	to ensure that all persons and bodies mentioned in clause 23.1.2 are made aware,
prior to disclosure, of the confidential nature of the Confidential Information and
that they owe a duty of confidence to the disclosing Party and to use all reasonable
endeavours to ensure that such persons and bodies comply with the provisions of this
clause 23; and
	 
	 	23.1.4  	not to use or circulate such Confidential Information within its own organisation
except to the extent necessary for the purposes of the Services.

	23.2  	The obligations in this clause 23 will not apply to any Confidential Information:

	 	23.2.1  	in the recipient’s possession (with full right to disclose) before receiving it;
	 
	 	23.2.2  	which is or becomes public knowledge other than by breach of this clause;
	 
	 	23.2.3  	is independently developed by the recipient without access to or use of the
Confidential Information; or
	 
	 	23.2.4  	is lawfully received from a third party (with no express or implied obligation as to
confidentiality).

	23.3  	This clause 23 will continue in force notwithstanding the termination of this Agreement for
any reason.
	 
	23.4  	Upon termination of this Agreement for any reason, each Party shall cause all Confidential
Information belonging to the other Party in whatever medium the same is recorded or held to be
returned, deleted or destroyed according to the written instructions of the other Party.
	 
	24.  	Publicity
	 
	24.1  	Except with the prior written consent of the other Party, neither Party shall make any press
announcement or otherwise publicise this Agreement or its terms.

     

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	25.  	Force Majeure
	 
	25.1  	This clause 25 shall apply if performance by either Party (the “Affected Party”) of its
obligations under this Agreement shall be materially and adversely affected in whole or in
part by reason (but subject to clause 25.3) of a Force Majeure Event.
	 
	25.2  	“Force Majeure Event” means any event or circumstance or a combination of events and
circumstances which:

	 	25.2.1  	are set out in clause 25.3; and
	 
	 	25.2.2  	the Affected Party could not have prevented by the exercise of Reasonable Skill and
Care and which (or the consequences of which) have the effect described in clause 25.1.

	25.3  	The events or circumstances referred to in 25.2.1 are any of the following:

	 	25.3.1  	an act of war, terrorism or civil commotion in or affecting the country of
performance of this Agreement or the country in or through which the Affected Party is
performing its obligations under this Agreement;
	 
	 	25.3.2  	strikes or industrial action which, in either case do not arise out of disputes
between the Affected Party or any member of the Provider Group or IPE Group as
appropriate and any of its employees, contractors, subcontractors or agents;
	 
	 	25.3.3  	an act of God or other disaster, whether natural or man made (unless made by the
Affected Party or any member of the Provider Group or IPE Group as appropriate); or
	 
	 	25.3.4  	governmental statute or regulation prohibiting the performance of the Services.

	25.4  	Notwithstanding clause 25.3, none of the following events or circumstances or their
consequences shall be capable of constituting or causing a Force Majeure Event:

	 	25.4.1  	except to the extent resulting from a Force Majeure Event, unavailability, late
delivery or changes in the cost of plant, machinery, equipment, materials, software or
consumables required by Provider;
	 
	 	25.4.2  	non-performance resulting from normal wear and tear of any plant, machinery,
equipment or materials;
	 
	 	25.4.3  	except to the extent resulting from a Force Majeure Event, lack of personnel or lack
of personnel of the requisite qualification, training, experience or expertise; and

     

Page 21

 

	 	25.4.4  	non-performance caused by, or arising out of, the negligent or intentional acts,
errors or omissions of the Affected Party, its directors, employees, contractors,
subcontractors or agents (including, without limitation, Provider’s personnel in the
case where Provider is the Affected Party).

	25.5  	If an Affected Party wishes to claim relief hereunder on account of any Force Majeure Event
it shall give notice to the other Party (the “Non Affected Party”) of that Force Majeure Event
as soon as reasonably practicable (but, in any event, within five (5) days) after becoming
aware of the same provided that neither Party shall be entitled to claim relief for any Force
Majeure Event unless it gives notice thereof to the other Party in accordance with this clause
25.5 no later than five (5) days after becoming aware of the same.
	 
	25.6  	Each notice given by an Affected Party to the Non Affected Party pursuant to clause 25.5
shall specify the Force Majeure Event in respect of which it is claiming relief.
	 
	25.7  	Reference to a “Period of Force Majeure” shall mean the period from the time at which notice
is given by the Affected Party to the Non Affected Party in respect of a Force Majeure Event
until such time as the performance by the Affected Party of its obligations hereunder is no
longer materially and adversely affected by that Force Majeure Event.
	 
	25.8  	The Affected Party shall forthwith give notice to the other Party of the end of the Period of
Force Majeure.
	 
	25.9  	If an Affected Party claims relief for a Force Majeure Event pursuant to clause 25.2 that
Affected Party shall be relieved of its obligations under this Agreement to the extent that
performance thereof is materially and adversely affected by that Force Majeure Event during
the Period of Force Majeure relating thereto.
	 
	25.10  	Where the Force Majeure Event continues for a period of twenty (20) Working Days then,
without prejudice to its other rights and remedies under this Agreement the Non Affected Party
may terminate this Agreement upon the service of reasonable prior written notice which shall
not in any event be less than ten (10) Working Days.
	 
	26.  	Notices
	 
	26.1  	Notices shall be in writing and may be sent by first class mail or facsimile transmission to
the addresses shown in clause 26.2 below provided that facsimile transmissions are confirmed
by mailed confirmation of a copy received no later than two (2) days following receipt of the
facsimile transmission as set out below. Correctly addressed notices sent by first class mail
shall be deemed to have been delivered seventy-two (72) hours after posting and correctly
directed facsimile transmissions shall be deemed to have been received instantaneously on
transmission if received on a Working Day, otherwise on the next Working Day thereafter
provided that they are confirmed as set out above.

     

Page 22

 

	26.2  	The relevant addresses for service of notice under clause 26.1 are:

	  	For the IPE:

Chief Executive

IPE

International House

1 St Katharine’s Way

London E1W 1UY	For the Provider:

Company Secretary

LIFFE

Cannon Bridge House

1 Cousin Lane

London EC4R 3XX

	27.  	Sub-Contracting and Assignment
	 
	27.1  	This Agreement is personal to the Provider. The Provider shall not assign, transfer,
sub-contract or otherwise dispose of this Agreement, any part thereof or its rights and
obligations hereunder without the previous consent in writing of IPE save that Provider may
transfer its rights and obligations hereunder to a member of the Provider Group to which all
or substantially all of the business relating to the provision of the Services is transferred.
The parties will enter into an appropriate form of novation agreement to effect such transfer.
Notwithstanding any subcontracting permitted hereunder, the Provider shall remain primarily
responsible for the acts and omissions of its subcontractors as though they were its own.
	 
	27.1A   	 Notwithstanding anything in this clause 27, Provider may assign, transfer or subcontract
this Agreement, or any part thereof, or its rights and obligations hereunder to the business
trading under the name “Cap Gemini Ernst Young”.
	 
	27.2  	Notwithstanding anything in this clause 27, IPE will not unreasonably withhold its consent
under clause 27.1, above, for the Provider to assign, transfer, or sub-contract this
Agreement, or any part thereof or its rights and obligations hereunder, to a technology
service provider of equal international standing and reputation to the business trading under
the name “Cap Gemini Ernst Young”.
	 
	27.3  	Subject to clause 27.4, IPE shall be entitled to transfer, assign or otherwise dispose of its
rights and obligations under this Agreement within the IPE Group provided that any such
assignment, transfer or other disposal shall not increase the burden of the Provider’s
obligations pursuant to this Agreement. IPE shall remain primarily responsible for the acts
and omissions of any transferee as though they were its own.
	 
	27.4  	IPE shall be entitled to disclose to any transferee pursuant to clause 27.1 and clause 27.3
any Confidential Information of the Provider which relates to the performance of the Services
and/or the creation of any TRS Functionality Change by the Provider. In such circumstances IPE
shall authorise the transferee to use such Confidential Information only for purposes relating
to the provision of the Services and for no other purposes and, for the avoidance of doubt,
the transferee shall be bound by the provisions of clause 23 in relation to such Confidential
Information.

     

Page 23

 

	28.  	Escrow
	 
	28.1  	At the request of IPE (provided such request is no earlier than six (6) months after the
Commencement Date) the Parties shall enter into a source code escrow agreement in the form set
out in schedule Twelve with the third party named therein.
	 
	29.  	Entire Agreement
	 
	29.1  	This Agreement is the complete and exclusive statement of the agreement between the Parties
relating to the subject matter of this Agreement which supersedes all previous communications,
agreements (including the LIFFE Agreement), representations (other than those fraudulently
made) and other arrangements, written or oral. The printed terms of any purchase order or
other correspondence and documents of either Party issued in connection with this Agreement
will not apply unless expressly accepted in writing by the other.
	 
	29.2  	The LIFFE Agreement shall terminate with effect from the Commencement Date but without
prejudice to the rights of the Parties accrued as at the date of termination.
	 
	30.  	No Waiver
	 
	30.1  	No waiver of any breach of this Agreement shall constitute a waiver of any other breach of
the same or other provisions of this Agreement and no waiver shall be effective unless made in
writing.
	 
	30.2  	No moderation or alteration of any Service shall be effective unless and until reflected in
the Change Control Process.
	 
	31.  	Jurisdiction
	 
	31.1  	This Agreement shall be governed by and construed in accordance with the laws of England and
Wales and the Parties hereby submit to the exclusive jurisdiction of the Courts of England and
Wales.

AS WITNESS the hands of the duly authorised representatives of the Parties the day and year first
before written.

	 	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	 	 	)	 	 	R.C. Ward
	for and on behalf of IPE

	 	/s/ R.C. Ward
	 	 	)	 	 	24th April 2001
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	/s/ John Foyle
	 	 	)	 	 	John Lewis Foyle
	for and on behalf of PROVIDER

	 	 	 	 	)	 	 	25th April 2001

	   	

Page 24

 

SCHEDULE ONE

Definitions

	 	 	 	 	 	 
	 	“Acceptance”

	 	 	means compliance by a TRS Functionality Change
or part thereof with the requirements specified
in a TRS Functionality Change Specification;	 
	 	“Acceptance Certificate”

	 	 	means a certificate signifying Acceptance;	 
	 	“Acceptance Criteria”

	 	 	means the criteria for Acceptance thereof
specified in a TRS Functionality Change
Specification;	 
	 	“Acceptance Test Plan”

	 	 	means a document detailing the Acceptance Tests
to take place including Acceptance Criteria, a
time-table, testing data to be utilised,
resources required, and the environment to be
used for the test;	 
	 	“Acceptance Tests”

	 	 	means the tests to be applied by IPE and
specified in the Acceptance Test Plan to
determine whether the TRS Functionality Changes
are capable of Acceptance;	 
	 	“Agreement”

	 	 	means this managed services agreement (as it
may be amended, supplemented or varied from
time to time);	 
	 	“Alternative Trade

Registration System”

	 	 	means an alternative computer system that can
carry out the same or similar functionality to
TRS;	 
	 	“Available Hours”

	 	 	means the total number of hours over the
Service Period excluding bank holidays and
weekends and any agreed hours between Provider
and the IPE that the Services are not required;	 
	 	“Break Fee”

	 	 	means a sum payable by IPE to Provider pursuant
to clause 16.3.1 calculated in accordance with
the table set out in schedule Six;	 
	 	“Bulk Edit”

	 	 	means those services specified in schedule Two
as Critical TRS Function 6;	 
	 	“Business Criticality”

	 	 	means the level of priority of any given
Service Element relative to all of the Service
Elements that form the Services (for the
avoidance of doubt this term is not currently
used within schedule Two but has been retained
by the Parties hereto in the event of future
use);	 
	 	“Business Requirements

Definition”

	 	 	means a document submitted to Provider by IPE
which details the business functionality
required for a TRS Functionality Change;	 
	 	“CCN”

	 	 	means a general term to describe any type of
Change;	 
	 	“CCN1”

	 	 	means a Change that relates to the schedules of
this Agreement;	 
	 

     

Page 25

 

	 	 	 	 	 	 
	 	“CCN2”

	 	 	means a Change that relates to the
functionality of TRS;	 
	 	“CCN1 Form”

	 	 	means the required document to instigate a CCN1;	 
	 	“CCN2 Form”

	 	 	means the required document to instigate a CCN2;	 
	 	“Change”

	 	 	means the changes implemented from time to time
by application of the Change Control Procedure
set out in schedule Eight;	 
	 	“Change Control Procedure”

	 	 	means the procedure for changing the Services
setout in schedule Eight;	 
	 	“Charge(s)”

	 	 	means all of the payments specified in schedule
Six as payable in respect of this Agreement;	 
	 	“Commencement Date”

	 	 	means 1 May 2001;	 
	 	“Confidential Information”

	 	 	means the terms of this Agreement and all other
information (whether commercial, financial,
technical or otherwise) relating to the
disclosing Party, its customers and suppliers,
disclosed to or otherwise obtained by the
recipient Party under or in connection with the
Services and this Agreement and which is
designated as being confidential or which is by
its nature clearly confidential;	 
	 	“Contract Manager”

	 	 	means that person nominated by IPE with
responsibility for the management of this
Agreement or any replacement nominated as such
in writing by IPE;	 
	 	“CPS”

	 	 	means Provider’s Clearing Processing System;	 
	 	“Clearing Processing

System”

	 	 	means software that provides real-time position
keeping, position transfer, settlement,
delivery and option exercise facilities for the
IPE and its Members and Member Firms;	 
	 	“Core Hours”

	 	 	means the period 06:30 to 18:30 when the LIFFE
Service Desk is available;	 
	 	“Critical TRS Functions”

	 	 	means the following functions:

1. Trade Claim Input

2. Edit by slip number

3. Display/print report

4. Confirm allocations

5. Trade enquiries

6. Bulk Edit
	 
	 	“Critical TRS Management

Function”

	 	 	means the following functions:

1. Bust trades

2. Change trade environment

3. System mode
	 
	 

     

Page 26

 

	 	 	 	 	 	 
	 	“Data”

	 	 	means pre-existing and new IPE data
pertaining to its business (including
without limitation as to its Members and/or
Member Firms) generated, modified and/or
adapted by the Services;	 
	 	“DMI Terminals”

	 	 	means direct Member or Member Firm input
computer terminals that are supplied by
Provider as part of the Services;	 
	 	“ETS”

	 	 	means IPE’s electronic trading system or
such other system as IPE chooses to provide
an analogous service;	 
	 	“Existing Materials”

	 	 	has the meaning ascribed to it in clause 8.2;	 
	 	“Exit Management Plan”

	 	 	means the plan set out in schedule Eleven;	 
	 	“External IPE Member Firms”

	 	 	means Member Firms who are not based at the
IPE Premises;	 
	 	“Fee Rates”

	 	 	means those fee rates attached as schedule
Six hereof and any subsequent revisions
thereto as may be agreed by the Parties in
accordance with this Agreement;	 
	 	“Financial Services Authority”

	 	 	means the statutory regulatory body of IPE,
based at 25 The North Colonnade, Canary
Wharf, London E14 5HS, and its successors
and assigns;	 
	 	“Governance Committee”

	 	 	means the supervisory committee composed of
members of IPE and the Provider and
constituted in accordance with schedule
Five;	 
	 	“HEAT”

	 	 	means the incident management system used by
LIFFE to record and track incidents that
relate to the Services;	 
	 	“Incident Management”

	 	 	means the process for managing unexpected
events that occur in the provision of the
Service;	 
	 	“Initial Period”

	 	 	means a period of five (5) years from the
Commencement Date;	 
	 	“Intellectual Property Rights”

	 	 	shall mean patents, copyright, trade marks,
know how, design rights, registered designs,
domain names, data bank rights and
confidential information including any and
all like rights of whatever nature
subsisting in any country including any
applications for same;	 
	 	“IPE Contract”

	 	 	means a futures and options contract as
maintained by IPE;	 
	 	“IPE Group”

	 	 	means IPE Holdings Plc and each of its
subsidiary, associated and holding companies
as further specified in section 736 of the
Companies Act 1985;	 
	 

     

Page 27

 

	 	 	 	 	 	 
	 	“IPE Premises”

	 	 	means the premises maintained and/or occupied
by IPE comprising Commodity Quay, London E19
AX together with International House, 1 St
Katharine’s Way, London E1W 1UY and 42-44
Bermondsey Street, SE1 3UD and any other
premises which are notified to Provider upon
six (6) months’ written notice;	 
	 	“IPE Systems”

	 	 	means the software and hardware infrastructure
used by the IPE to support trading at the IPE
Premises;	 
	 	“IPE Service Desk”

	 	 	means an Incident Management helpdesk
operated by IPE and located at the IPE
premises;	 
	 	“IPE Trade Management

Service”

	 	 	means the Service described in Service Element
TRS within schedule Two;	 
	 	“IPE”

	 	 	means the International Petroleum Exchange of
London Limited;	 
	 	“LCH”

	 	 	means the London Clearing House;	 
	 	“Licence(s)”

	 	 	means any licences(s) required to operate the
hardware and/or software;	 
	 	“LIFFE”

	 	 	means the London International Financial
Futures and Options Exchange;	 
	 	“Major Incident”

	 	 	means an incident that causes one or more
Member Firms to be unable to register trades
or receive position notifications or an
incident which causes such activity to be
significantly delayed;	 
	 	“Major Incident Manager”

	 	 	means a designated IPE staff member allocated
to manage a Major Incident;	 
	 	“Market”

	 	 	means the gas and electricity trading market;	 
	 	“Maximum Number of DMI
Terminals”

	 	 	means thirty (30) DMI Terminals;	 
	 	“Member”

	 	 	means an individual given authorisation by the
IPE to operate at the IPE Premises or any
individual member of the IPE staff;	 
	 	“Member Change And

Position Data”

	 	 	means data transmitted from IPE Systems to TRS
which contains valid trading series data and
changes in Member Firm status such as trading
rights, transfers to other Member Firms, user
account and password information, and a record
of all Member Firms’ positions held at the
LCH;	 
	 	“Member Position Report”

	 	 	means a report containing Member Change and
Position Data for Member Firms;	 
	 	“Member Firm”

	 	 	means a trading company or broker which is a
registered member of the IPE or the TRS
Office;	 
	 

     

Page 28

 

	 	 	 	 	 	 
	 	“Monarch File Server”

	 	 	means a computer system at the IPE premises
capable of receiving files sent by Provider by
means of file transfer;	 
	 	“Network Hardware”

	 	 	means the items of network routing and
distribution hardware deployed, managed and
supported by Provider at the IPE Premises;	 
	 	“Non DMI Terminal

Equipment”

	 	 	means any hardware or software not supplied by
Provider which is connected to TRS for the
purposes of running third party or Member Firm
developed software;	 
	 	“Open Interest”

	 	 	means the number of contracts remaining open which
need to be closed out or taken through to
delivery;	 
	 	“Operating Manual”

	 	 	means the document set out in schedule Ten;	 
	 	“Operational and
Expert Systems
Support”

	 	 	means support of TRS comprising starting, stopping
and restarting the System throughout the Service
Hours as a result of normal scheduled events or as
a result of events that cause the System to become
unavailable;	 
	 	“Operations Hot Desk”

	 	 	means an Incident Management helpdesk provided
by Provider to deal with incidents that occur
outside Core Hours on Working Days;	 
	 	“Overnight Incidents”

	 	 	means incidents that occur outside Service Hours;	 
	 	“Partially Available”
or “Partial
Availability”

	 	 	means (as the case may be) that portion of the
Service Period where an incident related to a
single Member Firm rendered that Member Firm
unable to carry out one or more Critical TRS
Function (as further set out in section 3 of
schedule Two);	 
	 	“Party”

	 	 	means either the IPE or the Provider;	 
	 	“Post Termination”

	 	 	means the period subsequent to the termination of
this Agreement;	 
	 	“Provider Group”

	 	 	means the Provider and each of its subsidiary,
associated and holding companies as further
specified in section 736 of the Companies Act
1985;	 
	 	“Provider Hardware”

	 	 	means the hardware provided by the Provider for
the provision of the Services including the
Provider Production Environment, Network Hardware
and DMI Terminals and as further specified in
schedule Three;	 
	 	“Provider Premises”

	 	 	means the premises occupied and/or maintained by
the Provider at Cannon Bridge House, 1 Cousin
Lane, London EC4R 3XX;	 
	 

     

Page 29

 

	 	 	 	 	 	 
	 	“Provider Production

Environment”

	 	 	means the centrally housed equipment used
by Provider to run the IPE TRS
environment;	 
	 	“Provider Service Desk”

	 	 	means an Incident Management helpdesk
located at the Provider Premises that
operates during Core Hours on Working
Days and operated by Provider;	 
	 	“Provider Software”

	 	 	means the software (including TRS)
provided by the Provider for the
provision of the Services;	 
	 	“Provider”

	 	 	means LIFFE Services Company Limited;	 
	 	“Reasonable Skill and Care”

	 	 	means in relation to any undertaking and
any comparable circumstances, the
exercise of that degree of skill and care
which would reasonably and ordinarily be
expected from a skilled and experienced
person engaged in the same type of
undertaking under the same or comparable
circumstances;	 
	 	“Replacement Provider”

	 	 	means any third party engaged by the IPE
to provide an Alternative Trade
Registration System;	 
	 	“Screen Freeze”

	 	 	means a condition where a screen image
becomes fixed and fails to reflect
changing information within the Service
Levels set out in TRS 5 ‘System Response
Time’;	 
	 	“Serious Incident”

	 	 	means the term used by Provider to
describe an incident that causes one or
more Members to be unable to register
trades or receive position notifications;	 
	 	“Serious Incident Manager”

	 	 	means the dedicated Provider staff member
allocated to manage a Serious Incident;	 
	 	“Serious Incident Management

Process”

	 	 	means the process used by Provider to
handle Major incidents reported by the
IPE Service Desk;	 
	 	“Service Bonus”

	 	 	means a system of points used to offset
Service Credits where Service Levels have
been exceeded over the Service Period in
accordance with schedule Seven;	 
	 	“Service Charge”

	 	 	means the sum specified in accordance
with schedule Six (excluding the Fee
Rates) and payable in accordance with
clause 12.2 by IPE to Provider;	 
	 	“Service Credits”

	 	 	means applicable credits against Service
Levels provided herein accruing and
calculated in accordance with schedule
Seven;	 
	 	“Service Delivery Manager”

	 	 	means for Provider that person nominated
by Provider with responsibility for the
management of this Agreement or any
replacement nominated as such in writing
by Provider;	 
	 

     

Page 30

 

	 	 	 	 	 	 
	 	“Service Element”

	 	 	means a subset of the Services as is more
particularly set out in the SLA (i.e.
TRS1, TRS2 etc);	 
	 	“Service Hours”

	 	 	means 07:15 to 22:00 on Working Days;	 
	 	“Service Level”

	 	 	means a target set for a particular
Service Element which must be met or
exceeded to avoid the application of
Service Credits as set out in schedule
Two and schedule Seven respectively;	 
	 	“Service Level Agreement”

	 	 	means a document specifying the Services
to be performed herein, and all
applicable service availability metrics
attached as schedule Two;	 
	 	“Service Period”

	 	 	means the three (3) calendar month period
commencing from the Commencement Date and
each consecutive three (3) calendar month
period commencing at the end of the
previous three (3) calendar month period
over which the Services shall be
measured. For the avoidance of doubt,
Service measurements and the application
of Service Credits and Service Bonuses
shall occur at the end of each such
period;	 
	 	“Service Stability Period”

	 	 	means three (3) months from the
Commencement Date;	 
	 	“Services”

	 	 	means the IPE trade management business
services to be performed herein and
further specified in the SLA;	 
	 	“SLA”

	 	 	means Service Level Agreement;	 
	 	“Software”

	 	 	means the Provider Software;	 
	 	“System”

	 	 	means the Provider Software and the
Provider Hardware;	 
	 	“TRAMP Protocol Specification”

	 	 	means the trade registration application
message protocol, which is a documented
interface supplied by Provider to allow
IPE Systems to interface with TRS;	 
	 	“Term”

	 	 	means the term of this Agreement,
including the Initial Period;	 
	 	TRS” or “Trade Registration

System”

	 	 	means the Provider’s proprietary Trade
Registration System used to provide real
time matching of trades carried out by
Members and/or Member Firms;	 
	 	“TRS Acceptance Testing

Service”

	 	 	means the Service defined in Service
Element TRS7 in schedule Two;	 
	 	“TRS Functionality Change”

	 	 	means any piece of work agreed as being a
TRS Functionality Change in accordance
with the Change Control Procedure;	 
	 

     

Page 31

 

	 	 	 	 	 	 
	 	“TRS Functionality Change

Specification”

	 	 	means the documented specification
agreed by the Parties for any
particular TRS Functionality Change in
addition to any relevant product
specification;	 
	 	“TRS Member Position Report”

	 	 	means a report on Member positions as
held within the LCH;	 
	 	“TRS New Member Infrastructure

Set-Up Service”

	 	 	means the Service described in Service
Element TRS8 within schedule Two;	 
	 	“TRS Open Interest Report”

	 	 	means a report on Members Open
Interest provided as part of the
Service Element TRS3 in schedule Two;	 
	 	“TRS Office”

	 	 	means those IPE staff members whose
TRS Terminal Identifications are
prefixed by IPE who provide a TRS
administration service on behalf of
the Member Firms and the IPE risk and
compliance group;	 
	 	“TRS Terminal Identification”

	 	 	means the system identity of a
computer terminal connected to TRS;	 
	 	“TRS Testing Service”

	 	 	means the Service specified in Service
Element TRS7 in schedule Two;	 
	 	“Trade Claim Input”

	 	 	means Critical TRS Function 1;	 
	 	“Trade Status Change Stream” or

“TSCS”

	 	 	means software which sends details of
any change of a trade or position to a
Member Firm’s back-office computer
system or the IPE Systems;	 
	 	“Update”

	 	 	means a new release version of the
whole or any part of the Provider
Software developed by the Provider
from time to time with the same or
improved functionality than the
current release version of the
Provider Software;	 
	 	“Wholly Available” or “Whole

Availability”

	 	 	means a portion of the Service Period
where all Critical TRS Functions are
available to all Member Firms as
further specified in section 3 of
schedule Two;	 
	 	“Wholly Unavailable” or “Whole

Unavailability”

	 	 	means a portion of the Service Period
where one (1) or more Critical TRS
Functions are not available to two
(2) or more Member Firms or where TRS
Office staff are unable to perform one
(1) or more Critical TRS System
Management Functions as further
specified in section 3 of schedule
Two; and	 
	 	“Working Day”

	 	 	means a day (other than a Saturday or
Sunday) on which banks are open for
business (other than solely for
trading and settlement in euro) in
London.	 
	 

     

Page 32

 

SCHEDULE TWO

The Services — Service Level Agreement

	1.  	Structure Of The Document

This document is in five sections.

	1.1  	Section One

	 	•  	This section provides an overview of the structure of the document.

	1.2  	Section Two

	 	•  	A description of the Services contained within this schedule.

	1.3  	Section Three

	 	•  	Descriptions of Whole Unavailability and Partial Availability and how it shall be
measured.

	1.4  	Section Four

	 	•  	Descriptions of Services and Service Levels contained within this schedule.

	1.5  	Section Five

	 	•  	Descriptions of Service Level Reporting.

	1.6  	Appendices

	 	•  	This section includes the contact and configuration details relating to the Provider
and IPE.

     

Page 33

 

	2.  	Services To Be Provided To The IPE By Provider
	 
	2.1  	IPE Trade Management Service

Provider shall provide TRS including TSCS for use at any agreed IPE Premises.

Trade Registration System (TRS)

TRS is used for the real time matching of trades carried out between Members on the IPE floor and
for the real time matching of trades received from ETS. Details of each trade are entered into the
system through clearing slips passed to the TRS Office for input, or are directly input to TRS by
the Members themselves using DMI Terminals, or are automatically received from ETS via an IPE
developed interface between ETS and TRS.

Trade Status Change Stream (TSCS)

TRS feeds trade details and position notification to back office administration and risk management
systems, as well as supporting client accounting. TSCS provides a real time record by record
transmission to Member Firms’ own computer systems or appointed back-office systems suppliers.
Every time a trade or position undergoes any change, a record is generated and transmitted via
TSCS.

2.1.1 File Transfer Of Members’ TRS Position Reports Service

Provider shall ensure that a single report detailing Members’ positions is produced from TRS
and sent via file transfer to the Monarch server at the IPE Premises in accordance with the
Service Level Agreement defined in Service Element TRS 2.

2.1.2 File Transfer Of TRS Open Interest Reports Service

Provider shall ensure that a single report detailing Open Interest is produced from TRS and
sent via file transfer to the Monarch server at the IPE Premises in accordance with the
Service Level Agreement defined in Service Element TRS 3.

2.1.3 DMI Terminal Replenishment Service

A stock of DMI Terminals provided by the Provider, shall be held at the IPE Premises for the
support of all Members. IPE will manage this stock, providing monthly statements of all
deployed DMI Terminals, and will also observe agreed re-order levels. When requesting
additional DMI Terminal stock, the IPE Service Desk shall make a request to the Provider
Service Desk. Provider shall arrange for the replenishment of DMI Terminal stock levels in
accordance with Service Element TRS 4.

Page 34

 

2.1.4 TRS Incident Management

Provider shall provide an Incident Management service to the IPE Service Desk, during Core
Hours. All calls shall be routed through the Provider Service Desk, where they are entered
into Provider’s HEAT call management tool. Outside Core Hours on Working Days, calls shall
be routed through to the Operations Hot Desk which shall provide the Incident Management
Service during such hours. From this starting point incidents are escalated within the
respective technology departments until they are successfully resolved, when closure shall
be communicated to the IPE Service Desk in accordance with the Service Level Agreement
defined in Service Element TRS 6.

2.1.4.1 Major Incidents

The IPE shall make reasonable endeavours to assess incidents before raising such
incidents as Major Incidents with Provider. However, the IPE shall maintain the
right to escalate any incident currently not treated as a Major Incident by Provider
to such a Major Incident that would invoke Provider’s Serious Incident Management
Process. This escalation shall be effected by a telephone call to the Provider
Service Desk from the IPE Major Incident Manager.

Major Incidents shall be escalated through Provider’s Serious Incident Management
Process. Under these circumstances the IPE Major incident Manager must be contacted
by the Provider’s Serious Incident Manager within ten minutes of the incident being
accepted by Provider as being a Serious Incident or escalated by IPE as a Major
Incident. At this time the IPE Major Incident Manager shall be given the following
information:

	 	1.  	The current status of the incident in terms of what is being
done to fix it
	 
	 	2.  	The next action to be taken with regard to the incident
	 
	 	3.  	An estimated resolution time for the incident
	 
	 	4.  	The time of the next update to the IPE Major incident Manager

2.1.5 TRS Testing and Acceptance Service

Provider shall provide a TRS Testing Service. This Service shall be provided in accordance
with the Service Level Agreement in Service Element TRS 7.

Provider shall provide a TRS Acceptance Test Service. This Service shall be provided in
accordance with the Service Level Agreement in Service Element TRS 7.

Page 35

 

2.1.6 TRS New Member Infrastructure Set-up Service

Provider shall provide a TRS New Member Infrastructure Setup Service. This Service shall be
provided in accordance with the Service Level Agreement in Service Element TRS 8.

	3.  	Service Measurements Partial Availability, Whole Unavailability

Service measurements shall be measured end to end originating at the TRS software running on the
Provider Production Environment at the Provider Premises (which form a component of the Provider
Hardware) and terminating on the Network Hardware (also a component of the Provider Hardware) at
the IPE Premises.

Hours lost due to Partial Availability shall be measured as the sum of the hours lost for each
incident (resolved to the nearest minute) where a single Member Firm was unable to carry out one or
more Critical TRS Functions. Together with the sum of the hours lost (resolved to the nearest
minute) where one or more members of TRS Office staff were unable to carry out one or more Critical
TRS System Management Functions.

Hours Lost due to Whole Unavailability shall be measured as the sum of the hours lost for each
incident (resolved to the nearest minute) where two or more Member Firms were unable to carry out
every Critical TRS Function. Together with the sum of the hours lost (resolved to the nearest
minute) where all members of TRS Office staff were unable to carry out one or more Critical TRS
System Management Functions.

	   	

Page 36

 

	4.  	Service Level Agreement schedules
	 
	4.1  	TRS Trade Management Service

	 	 	 	 	 	 	 	 
	 	Service Element Identification Details	 
	 	Service Element ID

	 	 	TRS	 	 	 
	 	Service Name

	 	 	IPE Trade Management Service	 	 	 
	 	Service Description

	 	 	Provision of real time matching of trades carried out
between Member Firms. Provision of changes in trade
details to Member Firms computer systems or back
office systems.	 	 	 
	 	Service Hours

	 	 	07:15 to 22:00 each Working Day

These Service Hours shall on request of the Contract
Manager and agreement of the Service Delivery Manager
or the Provider Service Desk (in the absence of the
Service Delivery Manager) be optionally extended by up
to half the amount of time lost in any Working Day
(rounded up to the nearest half-hour period) due to
Whole Unavailability. The extension of Service Hours
shall be requested by the Contract Manager or a member
of the IPE Service Desk in conjunction with the
Provider Service Desk.

Other requests for extension of the Service Hours to
include weekends and Bank Holidays shall not
unreasonably be refused and shall be made by the
Contract Manager in conjunction with the Provider
Service Desk. Provider shall optionally apply a Charge
for such extensions to Service Hours in accordance
with schedule Six.	 	 	 
	 

	 	4.1.1  	TRS 1 Trade matching and position notification

	 	 	 	 	 	 
	 	Service Element ID

	 	 	TRS 1	 
	 	Service Element

Name

	 	 	Trade matching and position notification	 
	 

     

Page 37

 

	 	 	 	 	 	 	 	 	 	 	 
	 	Business

Criticality

	 	 	 	 	 	 	 	 	 
	 	Service Element Definition
	 
	 	Service Element

Description

	 	 	The provision of
IRS to allow real time matching of trades together with TSCS for recording trade details for
Member Firms computer systems or back offices together with the provision of TSCS to enable
the IPE to pass trade details to IPE Systems.	 
	 	Service Element Measures	 
	 	Service Level	 	 	During the Service Stability Period the
following Service Level shall apply;

In each Service Period the Service shall be
Wholly Available for 99.45% of the Available
Hours.

In each Service Period the Service shall be
Partially Available for no greater than 0.08%
of the Available Hours.

For the period after the Service Stability
Period the following Service Level shall
apply;

In each Service Period the Service shall be
Wholly Available for 99.6% of the Available
Hours.

In each Service Period the Service shall be
Partially Available for no greater than 0.08%
of the Available Hours.

For the avoidance of doubt, any incidents of
outage, caused by a Member Firm regardless of
location who uses Non DMI Terminal Equipment,
shall be excluded from the calculation of
Service Credits and Bonuses until such Non DMI
Terminal Equipment is certified in accordance
with clause 15.1 of this Agreement.

Overnight Incidents related to invalid Member
Change And Position Data received from IPE
Systems shall be escalated to the on call
Major Incident Manager by no later than 04:00.

For the avoidance of doubt, where:

•  LIFFE staff are unable to contact the
on call Major Incident Manager for the purpose

   of resolving incidents that occur outside
Service Hours, or:	 
	 

     

Page 38

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	•
	 	 	IPE staff are unable to perform
resolving actions specified by LIFFE staff
relating to incidents that occur outside
Service Hours, then any subsequent reduction
in Available Hours will be excluded from the
calculation of Service Credits and Bonuses.

	 	 	 
	 	 	 	 	The Provider shall ensure that TRS is
available no later than three (3) hours after
receipt of adjusted and/or re-transmitted
valid Member Change And Position Data from the
IPE.	 
	 	Service Level Measurement	 	 	Percentage Whole Availability shall be
measured as Available Hours in the Service
Period minus the time lost due to the Service
being Wholly Unavailable as a percentage of
Available Hours.

Percentage Partial Availability shall be
measured as Available Hours in the Service
Period minus the time lost due to the Service
being Partially Available as a percentage of
Available Hours.

The measurement is between the TRS software
running on the Provider Production Environment
over the wide area network to the Network
Hardware on the IPE Premises. For the
avoidance of doubt, structured cabling, DMI
Terminals and attached printers are not part
of the measurement.

For the avoidance of doubt, unavailability
will be recorded from the point at which the
incident is reported to the Provider Service
Desk, and will stop at the point recorded by
the Provider Service Desk.	 
	 	Responsibility

The IPE shall	 	 	Provide and maintain the necessary structured
cabling to support the DMI Terminals and
terminal servers.	 
	 	Responsibility

Provider shall	 	 	Make all reasonable endeavors to contact the
IPE Major Incident Manager where required by
this Service Element.

Maintain all necessary Provider Network
Hardware and DMI Terminals deployed on IPE
Premises.

Provide an auditable process to verify the
Service Level measurement in conjunction with
the IPE Service Desk.	 
	 

     

Page 39

 

	 	 	 	 	 	 	 	 
	 	Constraints	 
	 	Standards
	 	 	 	 	 	 
	 	Dependencies
	 	 	 	 	 	 
	 	Additional
Notes
	 	 	 	 	 	 
	 	References
	 	 	 	 	 	 
	 	General information
	 	 	 	 	 	 
	 

     

Page 40

 

     4.1.2 TRS 2 File Transfer of Members’ TRS Position Reports

	 	 	 	 	 	 
	 	Service Element ID

	 	 	TRS 2	 
	 	Service Element Name

	 	 	File Transfer of TRS Member Position Report	 
	 	Business Criticality
	 	 	 	 
	 	Service Element Definition
	 	 	 	 
	 	Service Element
Description

	 	 	The IPE require a single report on all Member
positions to be sent via file transfer to the
Monarch File Server at the IPE Premises by 8am
each morning.	 
	 	Service Element Measures
	 	 	 	 
	 	Service Level

	 	 	Member Position Reports produced in the Service
Period shall be available via file transfer
onto the Monarch File Server at the IPE
Premises by 8am each Working Day for all but
three (3) Working Days per Service Period.	 
	 	Service Level Measurement

	 	 	The measurement is the total number of reports
that were not available via file transfer onto
the Monarch File Server at the IPE Premises by
8 am.	 
	 	Responsibility
The IPE shall

	 	 	Ensure the Monarch File Server is available to
accept the Member Position Reports by file
transfer overnight.	 
	 	Responsibility Provider shall

	 	 	Ensure that a single report detailing Members’
positions is produced from TRS and sent via
file transfer to the Monarch server at the IPE
Premises in accordance with the Service Level
Agreement defined in Service Element TRS 2.	 
	 	Constraints
	 	 	 	 
	 	Standards
	 	 	 	 
	 	Dependencies
	 	 	 	 
	 	Additional Notes
	 	 	 	 
	 	References
	 	 	 	 
	 	General information
	 	 	 	 
	 

Page 41

 

     4.1.3 TRS 3 File Transfer of TRS Open Interest Reports

	 	 	 	 	 	 
	 	Service Element ID

	 	 	TRS 3	 
	 	Service Element Name

	 	 	File transfer of TRS Open Interest Reports	 
	 	Business Criticality
	 	 	 	 
	 	Service Element Definition
	 	 	 	 
	 	Service Element
Description

	 	 	The IPE require a single report on all Open
Interest Positions to be available via file
transfer onto the Monarch File Server at the
IPE Premises by 10:30am each Working Day.	 
	 	Service Element Measures
	 	 	 	 
	 	Service Level

	 	 	Open Interest Reports shall be available via
file transfer onto the Monarch File Server at
the IPE Premises by 10:30am each Working Day
for all but three (3) Working Days per Service
Period. Provider shall use reasonable
endeavours to ensure that Open Interest Reports
not made available within the Service Level are
made available by no later than 3pm on the same
Working Day.

This Service will be provided under reasonable
endeavours and Service Credits/Bonuses shall
not apply to Service Element TRS3 during the
Service Stability Period.	 
	 	Service Level Measurement

	 	 	The measurement is the total number of Working
Days that reports were not available via file
transfer onto the Monarch File Server at the
IPE Premises by 10:30am.	 
	 	Responsibility The IPE shall

	 	 	Ensure the Monarch File Server is available to
accept the TRS Open Interest Reports by file
transfer overnight.	 
	 	Responsibility Provider
shall

	 	 	Ensure that a single report detailing Open
Interest is produced from TRS and sent via file
transfer to the Monarch server at the IPE
Premises in accordance with the Service Level
Agreement defined in Service Element TRS 3.	 
	 	Constraints
	 	 	 	 
	 	Standards
	 	 	 	 
	 	Dependencies
	 	 	 	 
	 	Additional Notes
	 	 	 	 
	 	References
	 	 	 	 
	 	General information
	 	 	 	 
	 

Page 42

 

     4.1.4 TRS4 DMI Terminal Replenishment

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element ID	 	 	TRS 4	 
	 	 	 	 	 	 
	 	Business Criticality
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element Name	 	 	DMI Terminal Replenishment	 
	 	 	 	 	 	 
	 	Service Element Definition	 
	 	 	 	 	 	 
	 	Service Element Description	 	 	The replenishment of stock levels of
DMI Terminals by Provider.	 
	 	 	 	 	 	 
	 	Service Element Measures
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Level	 	 	Faulty DMI Terminals shall be replaced
and new equipment dispatched to the IPE
within two Working Days of a request
being received by the Provider Service
Desk.	 
	 	 	 	 	 	 
	 	Service Level Measurement	 	 	The measurement will be calculated from
when a request is received by the
Provider Service desk until the
replacement equipment is acknowledged
as received by the IPE Service Desk.	 
	 	 	 	 	 	 
	 	Responsibility
The IPE shall

	 	 	•
	 	Ensure management of existing
DMI Terminal stock levels.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Raise an incident on the
Provider Service Desk to request
replacement DMI Terminals.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Raise a request with the
Provider Service desk for replacement
of faulty DMI Terminals items.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Ensure that the IPE Service
Desk confirms receipt of the DMI
Terminals.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Provide monthly statements of
currently deployed DMI Terminals.	 
	 	 
	 	 	 	 	 	 
	 	 

	 	 	•
	 	Observe equipment re-order
levels, as agreed with Provider.	 
	 	 	 	 	 	 
	 	

Responsibility Provider shall	 	 	•
	 	The Provider Service Desk shall
log and track requests for DMI
Terminals on the HEAT call management
tool.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Arrange delivery of the
equipment to the IPE Service Desk at
the IPE Premises.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Notify the IPE Service Desk
when the DMI Terminal equipment arrives
at the IPE Premises quoting the
relevant incident number.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Conduct an audit of all DMI
Terminals held both in stock and used
in the provision of the Service.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Determine an agreed re-order
level which will be followed by the IPE
when managing replacement equipment
stock.	 
	 	 	 	 	 	 

Page 43

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Provide an auditable process to
verify the Service Level measurement.	 
	 	 	 	 	 	 
	 	Constraints	 
	 	 	 	 	 	 
	 	Standards
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Dependencies
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Additional Notes	 
	 	 	 	 	 	 
	 	References	 	 	See schedule 3 of this Agreement for
details of DMI Terminals.	 
	 	 	 	 	 	 
	 	General information
	 	 	 	 	 	 
	 	 	 	 	 	 

Page 44

 

     4.1.5 TRS 5 TRS System Response Time

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element
ID

	 	 	TRS 5	 
	 	 	 	 	 	 
	 	Service Element Name

	 	 	TRS System Response Time	 
	 	 	 	 	 	 
	 	Business Criticality
	 	 	 	 
	 	 	 	 	 	 
	 	Service Element Definition	 	 
	 	 	 	 	 	 
	 	Service Element
Description

	 	 	The IPE requires that its Member Firms based at the
IPE Premises who need to access the TRS System
experience response times within an agreed Service
Level for specific Critical TRS Functions.	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Service Element Measures	 	 
	 	 	 	 	 	 
	 	Service Level

	 	 	During the Service Stability Period;	 
	 	 
	 	 	 	 
	 	

	 	 	The following Service Level shall apply;	 
	 	 
	 	 	 	 
	 	

	 	 	For each incident where two or more Member Firms
report unacceptable response times to the IPE
Service Desk then 20% of the duration of such
incidents shall be allocated as Whole
Unavailability and used in the measurement of
Service Element TRS 1.	 
	 	 
	 	 	 	 
	 	

	 	 	For the period after the Service Stability Period;	 
	 	 
	 	 	 	 
	 	

	 	 	The following Service Level shall apply;	 
	 	 
	 	 	 	 
	 	

	 	 	In each Service Period where average daily number
of half trades does not exceed 20,000 then;	 
	 	 
	 	 	 	 
	 	

	 	 	95% of all Trade Claim Inputs shall be completed in
less than three seconds;	 
	 	 
	 	 	 	 
	 	

	 	 	95% of all Bulk Edits shall be completed in less
than five (5) seconds.	 
	 	 
	 	 	 	 
	 	

	 	 	For the avoidance of doubt, any incidents of
outage, caused by a Member Firm regardless of
location who uses Non DMI Terminal Equipment, shall
be excluded from the calculation of Service Credits
and Bonuses until such Non DMI Terminal Equipment
is certified in accordance with clause 15.1 of this
Agreement.	 
	 	 	 	 	 	 

Page 45

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	For the avoidance of doubt, on contract expiry
days, intra day clearing updates may cause
momentary slowness to TRS. Any incidents of
unacceptable response time that are proven, upon
further investigation, to have coincided with the
running of intra day clearing updates will be
excluded from the calculation of Service Credits
and Bonuses.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	At all times:	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	For the avoidance of doubt, any daily incident of a
Screen Freeze causing response times outside the
service levels set out in TRS 5 ‘System Response
Time’ within any fifteen (15) minute daily time
period occurring between the hours of 20:30 and
22:30 and caused by the running of STP shall be
excluded from the calculation of Service Credits
and Bonuses.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Level
Measurement	 	 	The measurement during the Service Stability Period shall be as follows:	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	All incidents where unacceptable response times are
reported will be measured and recorded in the
following manner:	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Where two or more Member Firms have
reported unacceptable response times, to the IPE
Service Desk, within two minutes of each other, the
IPE Service Desk shall initiate a call to the
Provider Service Desk.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	On receipt of all relevant details from the
IPE Service Desk, the Provider Service Desk will
commence actions to restore the Service. It is at
this point that the timing of the incident will
begin.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	Provider will investigate and confirm
either Service restored or no fault found to the
IPE Service Desk. It is at this point that the
timing of the incident will stop.	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	If within a further five minutes the IPE
Service Desk report that the same two Member Firms
are still experiencing unacceptable response times,
the original call will be re-opened and actions to
restore the Service will re-commence. Provider will
confirm either Service restored or no fault found
to the IPE Service Desk. It is at this point that
the timing of the re-opened incident will stop.	 
	 	 	 	 	 	 

Page 46

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	The total duration of each incident throughout the
Service Period will be aggregated. Twenty percent
of each period of aggregate incident duration shall
be recorded as Wholly Unavailable and included in
the measurement for Service Element TRS 1.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	The measurement after the Service Stability Period
shall be the end to end response time for Critical
TRS Functions measured as the point between the
Network Hardware receiving the inbound messages:
Trade Claim Input and Bulk Edit and the despatch of
the outbound acknowledgement from the router.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Responsibility
Provider shall	 	 	Provide the measurement arid reporting for the
specified transaction types.	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Constraints	 
	 	 	 	 	 	 
	 	Standards	 	 	Response time measurements for Bulk Edits shall not
include the time taken to search and retrieve data.	 
	 	 	 	 	 	 
	 	Dependencies
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Additional Notes	 
	 	 	 	 	 	 
	 	References
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	General information
	 	 	 	 	 	 
	 	 	 	 	 	 

Page 47

 

     4.1.6 TRS 6 TRS Incident Management

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element
ID	 	 	TRS 6	 
	 	 	 	 	 	 
	 	Service Element Name	 	 	TRS Incident Management	 
	 	 	 	 	 	 
	 	Business Criticality
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element
Definition	 
	 	 	 	 	 	 
	 	Service Element
Description	 	 	The provision of an Incident Management service by Provider for
handling incidents with TRS.	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element Measures	 
	 	 	 	 	 	 
	 	Service Level	 	 	The Incident Management service caters for incidents in any one
of five severity groups	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 1 Serious Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	One, or more, Member Firms are unable to carry out one
or more Critical TRS Functions or where the TRS Office are
unable to perform one or more Critical TRS Systems Management
Functions.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 2 High Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Unacceptable TRS response time is experienced by two,
or more, Member Firms.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	TRS Open Interest Reports are not available by 10:30
the next working day.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 3 Medium Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	The TRS Office are unable to carry out system
management functions other than those defined as Critical TRS
Systems Management Functions.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 4 Low Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Member Position Reports are not available by 08:00 the
next Working Day.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 5 Non Urgent Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Requests for DMI Terminal replacement.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Level
Measurement	 	 	At the initial call the LIFFE Service Desk shall set the
severity to reflect the business impact. Once the severity is
set it shall not be changed with the exception of escalation of
incidents to Major Incidents which IPE reserve the right to
escalate. Each severity will have a resolution time, Service
Level target. The resolution time will be measured from the
time the HEAT record is opened to the time when it is set
“service restored”.	 
	 	 	 	 	 	 

Page 48

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	The policy for setting the initial call severity is defined and
the associated Service Level targets are defined below.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 1 Serious Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Targets for resolution of Serious Incidents, Severity 1
and Severity 2 incidents are taken into account in the
calculation of the agreed total of Wholly Unavailable hours per
Service Period.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 2 High Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Targets for resolution of High Impact Incidents,
Severity 1 and Severity 2 incidents are taken into account in
the calculation of the agreed total of Wholly Unavailable hours
per Service Period.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 3 Medium Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	All Severity 3 incidents shall be resolved within two
hours of being reported to the Provider Service desk.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 4 Low Impact Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	All Severity 4 incidents shall be resolved within two
Working Days of being reported to the Provider Service Desk.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Severity 5 Non Urgent Incidents	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	All Severity 5 incidents shall be resolved within two
(2) Working Days of being reported to the Provider Service
Desk.	 
	 	 	 	 	 	 
	 	Responsibility
The IPE shall	 	 	•	 	Perform basic TRS terminal re-set procedures, where
appropriate, before escalating faults to Provider.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Report all IPE or IPE Member faults to the Provider
Service Desk within Service Hours providing the following
information:	 
	 	 
	 	 	 	 	 	 	 	 
	 	

	 	 	 	 	q
	 	Mnemonic of Member or Member Firm affected
(i.e. Member or IPE).	 
	 	 
	 	 	 	 	 	 	 	 
	 	

	 	 	 	 	q
	 	Contact name and telephone number of the
affected Member.	 
	 	 
	 	 	 	 	 	 	 	 
	 	

	 	 	 	 	q
	 	A brief description of the incident.	 
	 	 
	 	 	 	 	 	 	 	 
	 	

	 	 	 	 	q
	 	Any supporting information (as relevant).	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Contact the affected Member Firm for any further supporting information as requested by the Provider Service
Desk,	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Arrange access to any IPE Premises, for Provider staff
(or Provider contracted third party staff) for resolution of
Provider faults.	 
	 	 	 	 	 	 

Page 49

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Confirm satisfactory closure with the affected Member
or Member Firm, at request of the Provider Service Desk.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Escalate all incidents classified as Major Incidents by
the IPE, requesting invocation of the Provider Serious Incident
Management Process.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Provide a single point of contact for the handling of
all Provider classified Serious Incidents.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Provide an on-call contact rota, with appropriate home,
mobile and pager numbers for the designated IPE Major Incident
Manager(s).	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Act upon specific recovery/workaround recommendations
and/or instructions as advised by the appropriate Provider
representatives.	 
	 	 	 	 	 	 
	 	Responsibility Provider shall	 	 	•	 	Accept and log all faults with full supporting
information from the IPE Service Desk during Service Hours.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Supply a HEAT log number at time of call receipt.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Escalate the incident for resolution to the relevant
party within Provider.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Track and progress incident.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Contact the IPE Service Desk for provision of further
information related to incidents as required.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Request access to any IPE Premises, via the IPE Service
Desk, for Provider staff (or Provider contracted third party
staff) for the purposes of incident resolution.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Invoke the Provider Serious Incident Management Process
where appropriate.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Invoke the Provider Serious Incident Management
Process, following the escalation of any IPE Major Incident
from the IPE Major Incident Manager.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Once a Serious Incident has been invoked, provide the
IPE Service Desk with the name of a single point of contact for
Serious Incidents who shall be responsible for communication of
the incident status to the IPE Major Incident Manager.	 
	 	 	 	 	 	 

Page 50

 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	•	 	Ensure the Provider single point of contact contacts
the IPE Major Incident Manager within ten (10) minutes of the
declaration by Provider of a Serious Incident or within ten
(10) minutes of any IPE Major Incident being escalated to
Provider (thus invoking the Provider Serious Incident
Management Process).	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Provide the IPE Major Incident Manager with the current
status, next action, estimated resolution time and next update
time related to the activities necessary to restore the
affected Service.	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Within five (5) Working Days of a Serious Incident
arrange a meeting between the Service Delivery Manager, and the
Contract Manager to discuss the incident and what steps are
being taken to avoid reoccurrence.	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Constraints	 
	 	 	 	 	 	 
	 	Standards
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Dependencies
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Additional Notes	 
	 	 	 	 	 	 
	 	References
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	General information
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 

Page 51

 

     4.1.7 TRS 7 TRS Testing and Acceptance Service

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element
ID

	 	 	TRS 7	 
	 	 	 	 	 	 
	 	Service Element Name

	 	 	TRS Testing And Acceptance Services	 
	 	 	 	 	 	 
	 	Business Criticality	 
	 	 	 	 	 	 
	 	Service Element Definition	 
	 	 	 	 	 	 
	 	Service Element
Description

	 	 	Provider shall provide a TRS Testing Service.
This Service will include a copy of the
production TRS or optionally at the request of
IPE a copy of the production TRS software
together with any changes being made as part of
a CCN software, testing hardware, and
Operational And Expert Systems Support.	 
	 	 
	 	 	 	 
	 	

	 	 	Support of this Service shall be available
between 09:00 and 17:30 on Working Days.	 
	 	 
	 	 	 	 
	 	

	 	 	Support outside of the specified times is
subject to separate agreement but shall not
unreasonably be withheld.	 
	 	 
	 	 	 	 
	 	

	 	 	Provider shall provide a TRS Acceptance Test
Service. This Service will include a copy of
the pre-release TRS software, testing hardware
and Operational and Expert System Support.	 
	 	 
	 	 	 	 
	 	

	 	 	Support for this Service shall be available
between 09:00 and 17:30 on Working Days.	 
	 	 
	 	 	 	 
	 	

	 	 	Support outside of the specified times is
subject to separate agreement.	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Service Level

	 	 	Provider shall within ten (10) working days of
a request from the Contract Manager prepare the
TRS Testing Service to enable the IPE to test
the impact of changes to IPE Systems on TRS.
This includes preparing the hardware and
software, synchronising the application version
of TRS with the production version and
allocating and scheduling resources to support
the test period.	 
	 	 	 	 	 	 
	 	Service Level Measurement

	 	 	As indicated in Service Level description.	 
	 	 	 	 	 	 
	 	Responsibility The IPE shall

	 	 	Ensure that all required inputs and
configuration data are submitted, in a fully
tested state, at time of the initial request
being made.	 
	 	 	 	 	 	 

Page 52

 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	 	 	 	 	 
	 	Constraints	 
	 	 	 	 	 	 
	 	Standards

	 	 	The TRS Testing Service may be invoked a
maximum of three (3) times per Service Period
and will extend for a maximum of ten (10)
Working Days per invocation. Additional
requests for extensions in invocation shall be
agreed with Provider but shall not be
unreasonably withheld.	 
	 	 
	 	 	 	 
	 	

	 	 	The TRS Acceptance Test Service may be invoked
a maximum of three (3) times per Service Period
and will extend for ten (10) working days per
invocation.	 
	 	 
	 	 	 	 
	 	

	 	 	The IPE shall provide, within twenty (20) days
notice, appropriate resources limited to
twenty-five (25) man days per year to
adequately test new releases of TRS, and TSCS
software at Provider’s request subject to the
frequency of such updates being no more than
four per annum. The IPE need not accept such
updates as long as the version of TRS used in
this Agreement is no greater than one release
behind the most current provided by Provider.	 
	 	 	 	 	 	 
	 	Dependencies

	 	 	From time to time, IPE may require access to
CPS for the purposes of testing. IPE
understands that CPS does not form part of this
Agreement and that Provider cannot make CPS
available without the specific written consent
of the LCH. In view of this, Provider shall
only make such CPS testing facility available
to IPE after Provider has received such written
consent from LCH.	 
	 	 	 	 	 	 
	 	Additional Notes	 
	 	 	 	 	 	 
	 	References
	 	 	 	 
	 	 	 	 	 	 
	 	General information
	 	 	 	 
	 	 	 	 	 	 

Page 53

 

     4.1.8 TRS 8 TRS New Member Infrastructure Set-up Service

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element
ID	 	 	TRS 8	 
	 	 	 	 	 	 
	 	Service Element Name	 	 	New Member Infrastructure Set-up Service	 
	 	 	 	 	 	 
	 	Business Criticality
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Service Element Definition	 
	 	 	 	 	 	 
	 	Service Element
Description	 	 	Provider shall provide and set-up the necessary
infrastructure to allow a new Member to use the IPE
Trade Management Service. This will include without
limitation, supplying a network connection, DMI
Terminal, software, valid user id’s and passwords.	 
	 	 	 	 	 	 
	 	Service Level	 	 	95% of all requests for infrastructure for new
Members shall be processed within fifteen (15)
working days of a request from the IPE Service Desk.	 
	 	 	 	 	 	 
	 	Service Level
Measurement	 	 	The measurement is from the time and day the request
is made by the JPE Service Desk to the time and day
the equipment is installed and ready for use by the
Member.	 
	 	 	 	 	 	 
	 	Responsibility
The IPE shall	 	 	Ensure that the IRE Service Desk raises an order
with Provider Service Delivery Manager including
Member details.	 
	 	 	 	 	 	 
	 	Responsibility
Provider shall

	 	 	•
	 	undertake a site survey where the equipment is to
be located	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	acquire equipment (if necessary) and schedule the
installation	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	create appropriate user Id and password	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	update the TRS database	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	commission the equipment and user id	 
	 	 
	 	 	 	 	 	 
	 	

	 	 	•
	 	inform the IPE service desk of a ready for use date	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Constraints	 
	 	 	 	 	 	 
	 	Standards
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Dependencies
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Additional Notes	 
	 	 	 	 	 	 
	 	References
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	General information	 	 	Where a New Member Infrastructure Set-up results in
the Maximum Number of DMI Terminals being exceeded
then any subsequent invocation of the New Member
Infrastructure Set-up service will attract an
additional charge as detailed in schedule Six.	 
	 	 	 	 	 	 

Page 54

 

5. Service Level Management And Reporting

5.1 Provider Responsibilities

At the end of each calendar month Provider shall provide a Service Level Report. This Service Level
Report shall contain the following information for the previous calendar month:

	•  	number of Available Hours;
	 
	•  	number of hours lost due to Whole Unavailability;
	 
	•  	number of hours lost due to Partial Availability;
	 
	•  	percentage Whole Availability;
	 
	•  	percentage Partial Availability;
	 
	•  	details of each incident causing Partial Availability or Whole Unavailability; and
	 
	•  	details of the action to be taken by Provider to prevent the incident reoccurring.

At the end of each Service Period, Provider shall provide the above information for the entire
Service Period and the Service Level Report shall also indicate the Service Credits/Bonuses that
have accrued over the Service Period.

Provider shall ensure that the following events take place at the end of each Service Period in
accordance with schedule 5 and shall include:

	•  	+5 Working Days: Service Level reports shall be produced and distributed
	 
	•  	+5 Working Days: Service Level review meeting shall be held
	 
	•  	+2 Working Days: Service review meeting minutes shall be distributed

Provider shall advise the Contract Manager of known changes, planned or otherwise, that may affect
the delivery of the Service.

Provider and or IPE as agreed shall organise and chair review meetings in accordance with schedule
5 Governance.

Provider shall confirm any changes to information contained in section 6 “Appendices”.
Provider shall minute and publish the outcome of service review meetings.

5.2 IPE Responsibilities

The IPE shall nominate a representative to act as single point of contact for Provider known as the
Contract Manager.

The IPE shall attend scheduled ad-hoc SLA review meetings with the Service Delivery Manager on an
agreed frequency and at an agreed location with the Contract Manager.

The IRE shall confirm any changes to information contained in section 6 “Appendices”.

Page 55

 

The IPE shall review Service Level Reports and raise any concerns or anomalies with
measurement data with the Service Delivery Manager.

	5.3  	SLA Review Period

	•  	The Service Level Agreement shall be reviewed in accordance with
the Change Control Procedure

	6.  	Appendices

	6.1  	Contact names and numbers

The following section provides of details of principal contacts for each area of Service. The
details shall be reviewed at each Service Level review meeting.

	 	6.1.1  	Provider

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Title	 	 	Area of responsibility	 	 	Telephone	 	 	Email	 
	 	[***]

	 	 	Service Delivery
Manager
	 	 	Service Level
Management
	 	 	(020) 7379 2041
	 	 	[***]	 
	 	[***]

	 	 	Customer Service
Manager
	 	 	Management of
Service Desk
	 	 	(020) 7379 2041
	 	 	[***]	 
	 	[***]

	 	 	IT Business
Manager
	 	 	Availability of test
TRS, development
of IPE TRS Service
	 	 	(020) 7379 2041
	 	 	[***]	 
	 	[***]

	 	 	Account Manager
	 	 	Overall account
relationship, pricing
and customer
satisfaction
	 	 	(020) 7379 2173
	 	 	[***]	 
	 

	 	6.1.2  	IPE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name	 	 	Title	 	 	Area of responsibility	 	 	Telephone	 	 	Email	 
	 	[***]

	 	 	Contract Manager
	 	 	Management of the
SLA and contract
terms and conditions
	 	 	(020) 7265 3774
	 	 	[***]	 
	 	[***]

	 	 	Service Desk Manager
	 	 	Management of
Service Desk
	 	 	(020) 7265 3774
	 	 	[***]	 
	 	[***]

	 	 	Market Operations
Manager
	 	 	Management of
trading floor
	 	 	(020) 7265 3614
	 	 	[***]	 
	 

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

Page 56

 

SCHEDULE THREE

Hardware

	1.  	Principles

	 	1.1  	The Provider Hardware, located at the IPE Premises, is recorded for inventory
purposes in this schedule. This inventory will be updated through Change Control as a
result of:

	 	•  	Changes to the number of DMI Terminals deployed at the IPE Premises
according to IPE requirements
	 
	 	•  	Changes to the type and configuration of Network Hardware deployed at the
IPE Premises as at the discretion of the Provider

	2.  	Provider Hardware housed at IPE Premises

	   	This section lists all Network Hardware and DMI Terminal equipment deployed on IPE Premises
for the provision of the Service.

	 	2.1  	Commodity Quay

	 	2.1.1  	Network Hardware

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	XVPLEX MAXSERVER 1620

TERMINAL SERVER (20 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	XYPLEX MAXSERVER 1620

TERMINAL SERVER (20 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	XYPLEX MAXSERVER 1620

TERMINAL SERVER (20 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	XYPLEX MAXSERVER 1620

TERMINAL SERVER (20 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	IJJA	 
	 	CISCO 2611 ACCESS ROUTER

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	CISCO 2611 ACCESS ROUTER

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	CISCO 1516 MANAGED

ETHERNET UTP HUB (16 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	CISCO 1516 MANAGED

ETHERNET UTP HUB (16 Port)

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 

Page 57

 

	 	2.1.2  	DMI Equipment deployed on the trading floor and associated support areas

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 109
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 110
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 107
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 106
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 105
	 	 	N/A
	 	 	N/A	 
	 	VT520& KEYBOARD

	 	 	BOOTH 100
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 114
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 115
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 116
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 117
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 118
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 119
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOOTH 120
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 121
	 	 	N/A
	 	 	WA	 
	 	LN 30 PRINTER

	 	 	BOOTH 121
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 190
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOOTH 190
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 191
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 183
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOOTH 184
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 177
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 176
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOOTH 167
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOOTH 167
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 24
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 24
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOX 24
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 27
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 27
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 29
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 32
	 	 	N/A
	 	 	N/A	 
	 

Page 58

 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	VT520 & KEYBOARD

	 	 	BOX 32
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOX 32
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 33
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 34
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 34
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 34
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 50
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 50
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 54
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 54
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	BOX 54
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX X57
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX X61
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX X61
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX X61
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 1
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 15
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 15
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 19
	 	 	N/A
	 	 	N/A	 
	 	VT520& KEYBOARD

	 	 	BOX 19
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	BOX 19
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	M3041D LINE PRINTER

	 	 	TRS ROOM
	 	 	N/A
	 	 	101*	 
	 	DEV SERVER 250

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	TRS ROOM
	 	 	N/A
	 	 	N/A	 
	 

	 	•  	Fed by Decserver 250

Page 59

 

	 	2.1.3  	DMI Terminals deployed in the office and store areas

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	VT520 & KEYBOARD

	 	 	IRE SYSTEMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	SERVICE DESK
	 	 	N/A
	 	 	N/A	 
	 	VT520 KEYBOARD

	 	 	INTERNATIONAL

HOUSE
	 	 	N/A
	 	 	N/A	 
	 	LN30 PRINTER

	 	 	INTERNATIONAL

HOUSE
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 	LN 30 PRINTER

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 	520 KEYBOARD

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 	520 KEYBOARD

	 	 	STORES
	 	 	N/A
	 	 	N/A	 
	 

	 	2.2  	Bermondsey Street

	 	2.2.1  	Network Hardware

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	XYPLEX ROUTER

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	XYPLEX TERMINAL SERVER

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 

	 	2.2.2  	DMI Terminals

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EQUIPMENT	 	 	LOCATION	 	 	SERIAL No.	 	 	ASSET No.	 
	 	VT420 & KEYBOARD

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT420 & KEYBOARD

	 	 	COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT420 & KEYBOARD

	 	 	OUTSIDE COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT420 & KEYBOARD

	 	 	OUTSIDE COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT520 & KEYBOARD

	 	 	OUTSIDE COMMS ROOM
	 	 	N/A
	 	 	N/A	 
	 	VT420 & KEYBOARD

	 	 	LOWER FLOOR OFFICE
	 	 	N/A
	 	 	N/A	 
	 	LA3O PRINTER

	 	 	LOWER FLOOR OFFICE
	 	 	N/A
	 	 	N/A	 
	 	LA3O PRINTER

	 	 	DISCONNECTED/KITCHEN

AREA
	 	 	N/A
	 	 	N/A	 
	 	LA3O PRINTER

	 	 	DISCONNECTED/KITCHEN

AREA
	 	 	N/A
	 	 	N/A	 
	 

Page 60

 

SCHEDULE FOUR

Environmental Conditions

	1.  	Principles

	 	1.1  	The Provider Hardware located at the IPE Premises shall be maintained by the
IPE in accordance with the manufacturers operating guidelines issued from time to time.
The current guidelines are set out in this schedule.

	2.  	Manufacturers Environmental Guideline

	 	2.1  	Environmental Guidelines for Cisco 2600 Series

	   	Power Requirements

	 	 	 	 	 	 	 
	 	 	Description	 	Specification
	 

	 	i)
	 	Power Dissipation
	 	72W max.
	

	 	ii)
	 	AC input voltage
	 	100 to 240 VAC
	

	 	iii)
	 	AC input current
	 	1.5A
	

	 	iv)
	 	Frequency
	 	47 to 64Hz
	

	 	v)
	 	DC Input Voltage
	 	-38V to -75V
	

	 	vi)
	 	DC Input Current
	 	2A

	   	Physical and Environmental Specifications

	 	 	 	 	 	 	 
	 	 	Description	 	Specification
	 

	 	i)
	 	Operating Temperature
	 	32 to 104°F (0 to 40°C)
	

	 	ii)
	 	Storage Temperature
	 	-13 to 158°F (-25 to 70°C)
	

	 	iii)
	 	Humidity
	 	5 to 95% non-condensing
	

	 	iv)
	 	Noise Level
	 	38 dbA min./42 dbA max.
	

	 	v)
	 	Dimensions (H x W x D)
	 	1.69 x 17.5 x 11.8 in. (4.3 x 44.5 x 30 cm)
	

	 	vi)
	 	Weight (average shipping)
	 	8.85 lb. (4.02 kg) mm. 10.25 lb. (4.66 kg) max.

	 	2.2  	Environmental Guidelines For Cisco 1516 10-BaseT ethernet Hub

	   	Power Requirements
	 
	   	The hub automatically adjusts to any voltage between 100-127 and 200-240 volts and either 50
or 60 Hz. The maximum current ratings represent the current that could be drawn with an
external transceiver attached to the hub.

Page 61

 

	   	Physical and Environmental Specifications

	 	 	 	 	 	 	 
	 	 	Description	 	Specification
	 

	 	I)
	 	Width
	 	42.5 cm (16.8 in)
	

	 	ii)
	 	Depth
	 	23.8 cm (9.4 in)
	

	 	iii)
	 	Height
	 	4.36 cm (1.7 in)
	

	 	iv)
	 	Weight
	 	8 lbs and 7 oz. (8.7 Ibs)
	

	 	v)
	 	ac voltage
	 	100-127 volts 200-240 volts
	

	 	vi)
	 	Maximum current
	 	0.3A max 0.2A max
	

	 	vii)
	 	Frequency range
	 	50/60 Hz 50/60 Hz
	

	 	viii)
	 	Operating Non-Operating
Temperature
	 	-5°C to 45°C (23°F to 113°F) -40°C
to 70°C (-40°F to 158°F)
	

	 	ix)
	 	Relative humidity
(non-condensing)
	 	10% to 95% at 40°C (104°F) 10% to
90% at 65°C (149°F)
	

	 	x)
	 	Maximum altitude
	 	3,000 m (9,843 ft) 3,000 m (9,843 ft)

	 	2.3  	Xyplex Terminal server MaxServer 1620

	   	Power Requirements

	   	110-240 VAC,50-60 Hz

110 Btu/hr42 W

0.27 A at 110 V(typ)

0.15 A at 220 V (typ)
	 
	   	Physical and Environmental Specifications Description

	 	 	 	 	 	 	 
	 	 	Description	 	Specification
	 

	 	i)
	 	Height
	 	4.45 cm/1 .75 in
	

	 	ii)
	 	Width
	 	48.26 cm/19 in
	

	 	iii)
	 	Depth
	 	29.71 cm/11.7 in
	

	 	iv)
	 	Weight
	 	3.5 kg/8 lbs
	

	 	i)
	 	Operating Temperature
	 	32 to 113 °F (0 to 45 °C)
	

	 	ii)
	 	Storage Temperature
	 	-4 to 140°F (-20 to 60 °C)
	

	 	iii)
	 	Humidity
	 	10% to 90% non-condensing
	 	 	iv)	 	Safety Compliance Complies with UL 1950,CSA M22.2 No.950, TUV EN60950;verified by UL, CSA and TUV
	 	 	v)	 	Emissions Compliance FCC Class B,EN55022 Class B,EN50082-1 ,VCCI Class B,AS3548,BCIQ Class A
	 	 	vi)	 	EC Directives Meets all applicable EC Directives

Page 62

 

	 	2.4  	Environmental Guidelines For NetMetrix 4987B Ethernet LanProbe with AUI

	 	 	 	 	 	 	 
	 	 	Specifications	 	 
	 	 	Description	 	Specification
	 

	 	i)
	 	Network Compatibility
	 	IEEE 802.3 Ethernet
	

	 	ii)
	 	Media Connection
	 	UTP (RJ-45) and AUI
	

	 	iii)
	 	Dimensions (h x w x d)
	 	4.3 x 42.5x 23.5 cm
	

	 	iv)
	 	Weight Probe
	 	2.72 kg (6 lbs)
	

	 	v)
	 	Power Supply
	 	Internal
	

	 	vi)
	 	Power Requirements
	 	240 VAC 50/60 Hz, .2 amps, 23.8 W
	

	 	vii)
	 	Range
	 	100 VAC to 240 VAC +/- 10%
	

	 	viii)
	 	Heat Output
	 	82 BTU/hr
	

	 	ix)
	 	Standards Compliance
	 	EMC: EN 55011 (CISPR-11 Class
	

	 	 	 	A) EN 50082-1 (IEC 801-2,3, 4) Safety:
	 	IEC 1010-1, CSA 22.2#1010.1
	

	 	x)
	 	Operating Environment Temperature
Humidity: 15% to 95% at 40 C (104 F)
	 	0 C to 55 C (32 F to 131 F)

Page 63

 

SCHEDULE FIVE

Governance

	1.  	Purpose
	 
	The purpose of this schedule is to set out the role, the composition and the objectives of the
Contract Manager and Service Delivery Manager, and the Governance Committee as the forum for
discussing issues relating to this Agreement.

	2.  	Contract Manager and Service Delivery Manager
	 
	2.1  	Meetings between the Contract Manager and Service Delivery Manager will take place on a
monthly basis. Such meetings will be held to discuss the day-to-day operational issues arising
out of the provision of the services by the Provider, and any subsequent issues which may
require escalation to the next Governance Committee meeting.
	 
	2.2  	In the event that an issue requires to be escalated to the Governance Committee, the Contract
Manager and/or Service Delivery Manager shall work together to prepare such reports as may be
appropriate for submission to the Governance Committee.
	 
	3.  	The Governance Committee
	 
	3.1  	The objective of the Governance Committee is to act as an escalation point for each party’s
respective Contract and/or Service Delivery Manager and to ensure that strategic as well as
operational issues are being raised and addressed as between the parties. Strategic issues
affecting Provider’s provision of the Services should be presented to the Governance Committee
by either party as soon as reasonably practicable and where applicable with business case(s)
for change to ensure appropriate prioritisation and assist decision making.
	 
	3.2  	The Governance Committee shall be headed by a director of IPE. Constitution of the Governance
Committee shall be as follows:

	 	 	 	 	 
	 	 	 For IPE:	 	For Provider:
	 

	 	Director (chair)
	 	Senior Executive
	

	 	Contract Manager
	 	Service Delivery Manager

	3.3  	Meetings of the Governance Committee shall be held quarterly (or less frequently by mutual
agreement) and may be called on reasonable notice by either party.
	 
	3.4  	Quarterly Meetings shall cover the following agenda items:

	 	•  	System performance levels over preceding quarter and in particular, conformity with
SLA;
	 
	 	•  	Change Control/ development progress; and

Page 64

 

	 	•  	Member/user issues over preceding quarter.

	3.5  	At any meeting of the Governance Committee, the parties shall be free to table change
requests under consideration pursuant to schedule 8 and other relevant documents (“reports”),
having first distributed the reports to each Committee member. Such reports may relate to any
aspect of the Services including without limitation management and financial reports relating
to the Services, reports in respect of matters such as changes, orders and problems relating
to the Services, all in a format to be agreed between the parties.

Page 65

 

SCHEDULE SIX

Charges

	1.  	Purpose
	 
	   	This schedule sets out the Charges, which shall apply to all amounts payable in respect of
this Agreement.
	 
	2.  	Scope
	 
	2.1  	A Service Charge will be levied in advance of each Service Period.
	 
	2.2  	Fee Rates will apply to Changes carried out under the provisions of schedule 8 of this
Agreement or schedule 11.
	 
	3.  	The Charges
	 
	3.1  	A Service Charge of £[***] will be made for the first and subsequent Service Periods
subject to revisions in accordance with section 5.1 of this schedule.
	 
	3.2  	Work undertaken in association with Changes will be invoiced on a staged basis. Completion of
a Change will be signified by the acceptance of the Change by an authorised member of IPE.
	 
	3.3  	Charges in respect of Changes will be based upon the Fee Rates specified in Section 3.5 of
this schedule or shall be as otherwise agreed between the Parties.
	 
	3.4  	The Service Charges shall be adjusted at the end of each Service Period in order to take into
account the Service Credits or Service Bonuses that have accrued over that Service Period.

	 	3.4.1  	If at the end of any Service Period, the aggregate of Service Credits that
have accrued over the Service Period exceed the aggregate amount of Service Bonuses
that have accrued during that Service Period, plus those non-applied Service Bonuses
(if any) that have been carried forward and have accrued from previous Service Periods,
Provider shall send to the IPE a cheque in an amount equal to the amount of such excess
of Service Credits over Service Bonuses no later than thirty (30) days from the end of
the Service Period.
	 
	 	3.4.2  	If at the end of any Service Period, the aggregate amount of non-applied
Service Bonuses accrued over a Service Period exceeds the aggregate amount of Service
Credits that have accrued over that same Service Period, then:

	 	(i)  	the Service Credits shall be cancelled; and

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

Page 66

 

	 	(ii)  	an amount equal to the excess of the Service Bonuses
over Service Credits shall be carried forward and applied against future
Service Credits accruing and due in respect of subsequent Service Periods

	3.5  	The Fee Rates chargeable in respect of any Changes commissioned under this Agreement shall be
as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Short Term Rate	 	 	Long Term Rate	 
	 	 Grade	 	 	£ /DAY	 	 	£/DAY	 
	 	Junior Programmer

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Programmer

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Senior Programmer

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Technical Consultant

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Consultant

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Senior Consultant

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Principal Consultant

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Managing Consultant

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Senior Manager

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 	Associate Director

	 	 	 	[***]	 	 	 	 	[***]	 	 
	 

	   	The above Fee Rates are subject to review as described in Section 5.2 of this schedule and
exclude V.A.T. which is charged at the prevailing rate.
	 
	3.6  	Where IPE requests an extension in Service Hours, IPE will instigate a Change to the Service
and will follow the procedure CCN1 set out in schedule 8 of this Agreement. If the Charge for
Service is increased, then that price will be agreed during the Change procedure.
	 
	4.  	Break Fee Charges

Provider Charges for terminating for convenience are outlined in the table below.

	 	 	 	 	 	 
	 
	 	 	 	 	Break	 
	 	Month	 	 	fee	 
	 	13

	 	 	£[***]	 
	 	14

	 	 	£[***]	 
	 	15

	 	 	£[***]	 
	 	16

	 	 	£[***]	 
	 	17

	 	 	£[***]	 
	 	18

	 	 	£[***]	 
	 	19

	 	 	£[***]	 
	 	20

	 	 	£[***]	 
	 	21

	 	 	£[***]	 
	 

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

Page 67

 

	 	 	 	 	 	 
	 
	 	 	 	 	Break	 
	 	Month	 	 	fee	 
	 	22

	 	 	£[***]	 
	 	23

	 	 	£[***]	 
	 	24

	 	 	£[***]	 
	 	25

	 	 	£[***]	 
	 	26

	 	 	£[***]	 
	 	27

	 	 	£[***]	 
	 	28

	 	 	£[***]	 
	 	29

	 	 	£[***]	 
	 	30

	 	 	£[***]	 
	 	31

	 	 	£[***]	 
	 	32

	 	 	£[***]	 
	 	33

	 	 	£[***]	 
	 	34

	 	 	£[***]	 
	 	35

	 	 	£[***]	 
	 	36

	 	 	£[***]	 
	 	37

	 	 	£[***]	 
	 	38

	 	 	£[***]	 
	 	39

	 	 	£[***]	 
	 	40

	 	 	£[***]	 
	 	41

	 	 	£[***]	 
	 	42

	 	 	£[***]	 
	 	43

	 	 	£[***]	 
	 	44

	 	 	£[***]	 
	 	45

	 	 	£[***]	 
	 	46

	 	 	£[***]	 
	 	47

	 	 	£[***]	 
	 	48

	 	 	£[***]	 
	 	49

	 	 	£[***]	 
	 	50

	 	 	£[***]	 
	 	51

	 	 	£[***]	 
	 	52

	 	 	£[***]	 
	 	53

	 	 	£[***]	 
	 	54

	 	 	£[***]	 
	 	55

	 	 	£[***]	 
	 	56

	 	 	£[***]	 
	 	57

	 	 	£[***]	 
	 	58

	 	 	£[***]	 
	 	59

	 	 	£[***]	 
	 	60

	 	 	£[***]	 
	 

	4.1  	Upon termination of the Agreement, IPE and Provider will use the table above in identifying
the month in which the date of termination occurs and selecting the associated Break Fee that
is payable in addition to the pro-rata Service Charge, or if appropriate, deducted from the
pre-paid Service Charges and the outstanding amount refunded to IPE.

***  Certain
information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect
to the omitted portions.

Page 68

 

	4.2  	For the avoidance of doubt, the Break Fee payable shall not be due for payment until the
effective date of termination (i.e. the date notice of termination expires) upon which it
shall immediately be due.
	 
	5.  	Variation Of Charges
	 
	5.1  	The Service Charge detailed in this schedule will be subject to an annual variation to
reflect market changes. The Service Charge shall, upon the anniversary of the Commencement
Date be varied by an amount equal to the combined increase of CEL Index and RPI as applied to
elements of the Service Charge. For the avoidance of doubt CEL Index will be applied to the
element of the Service Charge related to staff, and shall not exceed 70% (seventy percent) of
the Service Charge. RPI will be applied to all other elements of the Service Charge.
	 
	5.2  	On each anniversary of the Commencement Date, Provider reserves the right to increase the Fee
Rates by an amount equal to the percentage increase in RPI over the last twelve months for
which figures are available.
	 
	6.  	Exit Management Charges
	 
	   	Charges for Exit Management referenced in schedule 11 of this Agreement with be levied at
the then prevailing Fee Rates for the relevant activities, adjusted as set out in clause 5.2
above.

Page 69

 

SCHEDULE SEVEN

Service Credits

	1.  	Service Credits and Service Bonuses

Service Credits and Service Bonuses shall be applicable to the Services provided under this
Agreement. Service Credits are intended to encourage Provider to improve Services that have failed
to meet the agreed Service Level. Service Bonuses are intended to motivate Provider to deliver
Services that exceed Service Levels and may, subject to the following, be used by the Provider to
offset any applicable Service Credits. The tables contained within this schedule represent all
applicable Service Credits and/or Bonuses, which shall be applied on a per-service basis.

	1.1  	One Service Credit point equals a 0.75% reduction in the Service Charge for the Service
Period in which the Service Credit accrued. Provider shall account to IPE for this reduction
in accordance with schedule 6.
	 
	1.2  	One Service Bonus point equals a 0.75% notional increase in the Service Charge for the
Service Period in which such Service Bonus accrued. Service Bonus points may be used to reduce
Service Credits. If any Service Bonuses accrue in any Service Period these shall be
accumulated over subsequent Service Periods to a maximum of fifty (50) Service Bonus points at
any one time. When the maximum of fifty (50) Service Bonus points has accrued, further Service
Bonus points shall only accrue when the accumulated number of Service Bonus points has reduced
below fifty (50), and then only to the extent of such reduction. There are no circumstances
where Service Bonus points may cause an increase in the Service Charge, whereas Service
Credits shall reduce the Service Charge unless offset by Service Bonuses.
	 
	1.3  	No more than thirty (30) Service Credits may accrue in respect of any Service Period, whether
accruing in respect of one or a number of Service Elements.
	 
	1.4  	The IPE shall have the right (in its sole discretion) to decide whether to waive any Service
Credits for any Service Period.
	 
	2.  	Application Of Service Credits/Bonuses
	 
	2.1  	Reconciliation of Service Credits and/or Bonuses (if applicable) shall occur at the end of
each Service Period and shall relate to Provider’s actual performance of the applicable
Service Levels over that Service Period. At the end of each Service Period, Service Credits
shall apply where any Service Element has not been met and Service Bonuses shall apply when it
has been exceeded.
	 
	   	For Service Element TRS1, the associated Service Credits and Service Bonuses are indicated
in table 3 for the following Service Levels:

	 	•  	percentage Whole Availability; and
	 
	 	•  	percentage Partial Availability.

 Page 70

 

	   	Provider shall calculate percentage Whole Availability and percentage Partial Availability
as follows:
	 
	   	percentage Whole Availability = 100 x (Available Hours in Service Period — number of hours
lost due to Whole Unavailability)/Available Hours in Service Period
	 
	   	percentage Partial Availability = 100 — (100 x (Available Hours in Service Period — number
of hours lost due to Partial Availabiilty)/Available Hours in Service Period)

	2.2  	Actual number of Available Hours in Service Period will vary from period to period dependent
upon, amongst other things, the number of available Working Days in that Service Period.
	 
	2.3  	The calculations for percentage Whole Unavailability and percentage Partial Availability
calculated as above shall be matched against the nearest percentage availability measures in
the relevant column of table 3 below during the Service Stability Period, and table 4 below
outside the Service Stability Period, in order to establish the Service Credits or Service
Bonuses applicable for Whole Availability or Partial Availability, as the case may be. The
higher of the two values for Service Credits and Service Bonuses for Whole Availability and
Partial Availability shall be selected and shall become the Service Credits or Service Bonuses
due for Service Element TRS 1.
	 
	2.4  	Service Credits and Service Bonuses do not apply to Service Elements TRS4, TRS6, TRS7 and
TRS8.
	 
	   	For Service Elements TRS2, TRS3 and TRS5 the associated Service Credits and Service Bonuses
are indicated in the tables in 5 and 6 for the following Service Levels;

	 	•  	Member Position Reports delivery
	 
	 	•  	Member Open Interest Reports delivery
	 
	 	•  	TRS Bulk Edit response time
	 
	 	•  	TRS Trade Claim Input response time

	2.5  	The delivery performance in respect of Service Elements TRS2 and TRS3 shall be matched
against the appropriate column in table 5 below and the appropriate number of Service Credits
or Service Bonuses read off that table for each month of the Service Period. The total Service
Credits or Service Bonuses for Service Element TRS2 and Service Element TRS3 for the Service
Period shall be the sum of the monthly Service Credits or Service Bonuses. The response times
achieved in respect of Service Element TRS5 shall be matched against the

 Page 71

 

	 	relevant column in table 6 and the appropriate number of Service Credits or Service Bonuses
read off the table

	3.  	Service Matrix For Element TRS1 During Service Stability Period

The table below shows in the Service Credits and Service Bonuses that shall apply during the
Service Stability Period. Negative numbers indicate Service Bonuses and positive numbers Service
Credits.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Percentage	 	 	Service	 	 	 	Percentage Partially	 	 	 	Service	 	 	 	 	 
	 	Wholly Available	 	 	Credits/Bonus	 	 	 	Available	 	 	 	Credits/Bonus	 	 	 	Comment	 
	 	100.00
	 	 	 	-24	 	 	 	 	0.00	 	 	 	 	-3	 	 	 	 	 
	 	99.97
	 	 	 	-16	 	 	 	 	0.03	 	 	 	 	0	 	 	 	 	 
	 	99.94
	 	 	 	-12	 	 	 	 	0.06	 	 	 	 	0	 	 	 	 	 
	 	99.92
	 	 	 	-10	 	 	 	 	0.08	 	 	 	 	0	 	 	 	Partially Available SLA Target	 
	 	99.89
	 	 	 	-8	 	 	 	 	0.11	 	 	 	 	2	 	 	 	 	 
	 	99.86
	 	 	 	-6	 	 	 	 	0.14	 	 	 	 	2	 	 	 	 	 
	 	99.83
	 	 	 	-4	 	 	 	 	0.17	 	 	 	 	3	 	 	 	 	 
	 	99.80
	 	 	 	-3	 	 	 	 	0.20	 	 	 	 	3	 	 	 	 	 
	 	99.77
	 	 	 	-2	 	 	 	 	0.23	 	 	 	 	3	 	 	 	 	 
	 	99.75
	 	 	 	0	 	 	 	 	0.25	 	 	 	 	3	 	 	 	 	 
	 	99.72
	 	 	 	0	 	 	 	 	0.28	 	 	 	 	3	 	 	 	 	 
	 	99.69
	 	 	 	0	 	 	 	 	0.31	 	 	 	 	3	 	 	 	 	 
	 	99.66
	 	 	 	0	 	 	 	 	0.34	 	 	 	 	3	 	 	 	 	 
	 	99.63
	 	 	 	0	 	 	 	 	0.37	 	 	 	 	3	 	 	 	 	 
	 	99.60
	 	 	 	0	 	 	 	 	0.40	 	 	 	 	4	 	 	 	 	 
	 	99.58
	 	 	 	0	 	 	 	 	0.42	 	 	 	 	4	 	 	 	 	 
	 	99.55
	 	 	 	0	 	 	 	 	0.45	 	 	 	 	4	 	 	 	 	 
	 	99.52
	 	 	 	0	 	 	 	 	0.48	 	 	 	 	4	 	 	 	 	 
	 	99.49
	 	 	 	0	 	 	 	 	0.51	 	 	 	 	4	 	 	 	 	 
	 	99.46
	 	 	 	0	 	 	 	 	0.54	 	 	 	 	4	 	 	 	 	 
	 	99.45
	 	 	 	0	 	 	 	 	0.55	 	 	 	 	5	 	 	 	Wholly Available SLA Target	 
	 	99.43
	 	 	 	5	 	 	 	 	0.57	 	 	 	 	5	 	 	 	 	 
	 	99.40
	 	 	 	8	 	 	 	 	0.60	 	 	 	 	5	 	 	 	 	 
	 	99.37
	 	 	 	10	 	 	 	 	0.63	 	 	 	 	5	 	 	 	 	 
	 	99.34
	 	 	 	14	 	 	 	 	0.66	 	 	 	 	5	 	 	 	 	 
	 	99.32
	 	 	 	18	 	 	 	 	0.68	 	 	 	 	6	 	 	 	 	 
	 	99.29
	 	 	 	20	 	 	 	 	0.71	 	 	 	 	6	 	 	 	 	 
	 	99.26
	 	 	 	22	 	 	 	 	0.74	 	 	 	 	6	 	 	 	 	 
	 	=<99.23
	 	 	 	30	 	 	 	 	0.77	 	 	 	 	7	 	 	 	 	 
	 

 Page 72

 

	4.  	Service Matrix For Element TRS1 Following Service Stability Period

The table below shows in the Service Credits and Service Bonuses that shall apply for the Service
Periods following the Service Stability Period. Negative numbers indicate Service Bonuses and
positive numbers Service Credits.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Percentage	 	 	Service	 	 	 	Percentage	 	 	 	Service	 	 	 	 	 
	 	Wholly Available	 	 	Credits/Bonus	 	 	 	Partially Available	 	 	 	Credits/Bonus	 	 	 	Comment	 
	 	100.00
	 	 	 	-24	 	 	 	 	0.00	 	 	 	 	-3	 	 	 	 	 
	 	99.97
	 	 	 	-16	 	 	 	 	0.03	 	 	 	 	0	 	 	 	 	 
	 	99.94
	 	 	 	-12	 	 	 	 	0.06	 	 	 	 	0	 	 	 	 	 
	 	99.92
	 	 	 	-10	 	 	 	 	0.08	 	 	 	 	0	 	 	 	Partially Available SLA Target	 
	 	99.89
	 	 	 	-8	 	 	 	 	0.11	 	 	 	 	2	 	 	 	 	 
	 	99.86
	 	 	 	-6	 	 	 	 	0.14	 	 	 	 	2	 	 	 	 	 
	 	99.83
	 	 	 	-4	 	 	 	 	0.17	 	 	 	 	3	 	 	 	 	 
	 	99.80
	 	 	 	-3	 	 	 	 	0.20	 	 	 	 	3	 	 	 	 	 
	 	99.77
	 	 	 	-2	 	 	 	 	0.23	 	 	 	 	3	 	 	 	 	 
	 	99.75
	 	 	 	0	 	 	 	 	0.25	 	 	 	 	3	 	 	 	 	 
	 	99.72
	 	 	 	0	 	 	 	 	0.28	 	 	 	 	3	 	 	 	 	 
	 	99.69
	 	 	 	0	 	 	 	 	0.31	 	 	 	 	3	 	 	 	 	 
	 	99.66
	 	 	 	0	 	 	 	 	0.34	 	 	 	 	3	 	 	 	 	 
	 	99.63
	 	 	 	0	 	 	 	 	0.37	 	 	 	 	3	 	 	 	 	 
	 	99.60
	 	 	 	0	 	 	 	 	0.40	 	 	 	 	4	 	 	 	Wholly Available SLA Target	 
	 	99.58
	 	 	 	5	 	 	 	 	0.42	 	 	 	 	4	 	 	 	 	 
	 	99.55
	 	 	 	7	 	 	 	 	0.45	 	 	 	 	4	 	 	 	 	 
	 	99.52
	 	 	 	9	 	 	 	 	0.48	 	 	 	 	4	 	 	 	 	 
	 	99.49
	 	 	 	11	 	 	 	 	0.51	 	 	 	 	4	 	 	 	 	 
	 	99.46
	 	 	 	13	 	 	 	 	0.54	 	 	 	 	4	 	 	 	 	 
	 	99.45
	 	 	 	15	 	 	 	 	0.55	 	 	 	 	5	 	 	 	 	 
	 	99.43
	 	 	 	17	 	 	 	 	0.57	 	 	 	 	5	 	 	 	 	 
	 	99.40
	 	 	 	19	 	 	 	 	0.60	 	 	 	 	5	 	 	 	 	 
	 	99.37
	 	 	 	21	 	 	 	 	0.63	 	 	 	 	5	 	 	 	 	 
	 	99.34
	 	 	 	23	 	 	 	 	0.66	 	 	 	 	5	 	 	 	 	 
	 	99.32
	 	 	 	25	 	 	 	 	0.68	 	 	 	 	6	 	 	 	 	 
	 	99.29
	 	 	 	27	 	 	 	 	0.71	 	 	 	 	6	 	 	 	 	 
	 	99.26
	 	 	 	29	 	 	 	 	0.74	 	 	 	 	6	 	 	 	 	 
	 	=<99.23
	 	 	 	30	 	 	 	 	0.77	 	 	 	 	7	 	 	 	 	 
	 

 Page 73

 

	5.  	Service Matrix For Elements TRS2-TRS3

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	Service Credit/Bonus	 	 	Service Credit/Bonus	 	 	Service Credit/Bonus	 	 	Service Credit/Bonus	 	 	Service Credit/Bonus	 
	 	Service	 	 	 	 	 	>7 Working Days	 	 	4-7 Working Days	 	 	3 Working Days	 	 	1-2 Working Days	 	 	0 Working Days	 
	 	Element Id	 	 	Description	 	 	where SLA breached	 	 	where SLA breached	 	 	where SLA breached	 	 	where SLA breached	 	 	where SLA breached	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	TRS 2

	 	 	Delivery of TRS
Member Position
Report
	 	 	4	 	 	 	2	 	 	 	0	 	 	 	0	 	 	 	-2	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	TRS 3

	 	 	Delivery of Open
Interest Report
	 	 	6	 	 	 	3	 	 	 	0	 	 	 	0	 	 	 	-3	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 Page 74

 

	6.  	Service Matrix For Element TRS5

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Service Element Id	 	 	Description	 	 	Less than 85% <5 secs	 	 	85%-89.9% <5 secs	 	 	90%-94.9% <5 secs	 	 	95%-97.9% <5 secs	 	 	98%-98.9% <5 secs	 	 	99%-99.89 <5 secs	 	 	99.9-100% <5 secs	 
	 	TRS 5
	 	 	TRS system response time Bulk Edit	 	 	8	 	 	4	 	 	3	 	 	0	 	 	-1	 	 	-3	 	 	-6	 
	 	Service Element Id	 	 	Description	 	 	<85% <3 secs	 	 	85%-89.9% <3 secs	 	 	90%-94.9% <3 secs	 	 	95%-97.9% <3 secs	 	 	98%-98.9%  <3 secs	 	 	99%-99.89% <3 secs	 	 	99.9-100% <3 secs	 
	 	TRS 5
	 	 	TRS system response time Trade Claim Input	 	 	8	 	 	4	 	 	3	 	 	0	 	 	-1	 	 	-3	 	 	-6	 
	 

 Page 75

 

SCHEDULE EIGHT

Change Control

	1.  	Principles
	 
	1.1  	This schedule describes the process that shall be used whenever either IPE or Provider have a
requirement to change;

	 	1.  	Any component of the Services as defined in the associated schedules to this
Agreement; or
	 
	 	2.  	TRS functionality

	1.2  	A change to any component of the Services shall use the CCN1 process as described in section
2.
	 
	1.3  	A TRS Functionality Change shall use the CCN2 process as described in section 3.
	 
	1.4  	Provider may at any time recommend and IPE may at any time request such a change.
	 
	1.5  	Either Party shall register required changes by the use of a CCN1 Form as set out in Appendix
A or a CCN2 Form as set out in Appendix B.
	 
	1.6  	The CCN1 and CCN2 Forms shall be used to control the stages each change shall pass through.
	 
	1.7  	The timescales that are to apply to the CCN1 procedure are set out in section 4; and the
timescales that are to apply to the CCN2 procedure are set out in section 5.
	 
	1.8  	CCN1 Forms will be held by both the Service Delivery Manager and the Contract Manager.
	 
	1.9  	The Party requiring the Change, may if desired, initially send the appropriate CCN form to
the other Party by any appropriate method such as electronic mail, fax etc. but shall always
additionally send the relevant CCN form by post.
	 
	1.10  	On receipt of the CCN1 or CCN2 Form the Party shall acknowledge receipt of the form in
writing within two (2) Working Days.
	 
	1.11  	Neither Provider nor IPE shall unreasonably withhold its agreement to the acceptance of any
proposed change.
	 
	1.12  	The obligations undertaken by either Party in connection with the Agreement shall in no way
be changed until an amendment to the Agreement has been effected in accordance with the terms
of the relevant CCN.

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	1.13  	The Service Delivery Manager shall be responsible for creating and maintaining a record of
all CCN1 and CCN2 changes including the current status, priority and impact. Regular progress
reports shall be provided on a frequency to be agreed by both Parties.
	 
	1.14  	CCNs shall be chargeable at the Fee Rates as described in schedule 6 (subject to any contrary
agreement between the Parties which shall be reflected in the relevant CCN).
	 
	1.15  	For the avoidance of doubt the following activities shall be non-chargeable;

	 	•  	any discrete work activity as agreed by both Parties associated with the CCN change
totalling up to three (3) man days in any month, but limited to the work being
undertaken by a Provider Technical Consultant or lower grade as defined in the Fee
Rates in schedule six ; and/or
	 
	 	•  	any work done as agreed by the Parties by Provider in Stage 1 of the preparation of
the CCN.

	1.16  	Provider shall ensure in so far as is reasonably practicable that the resource allocated to
carry out a CCN shall be the most effective mix of skills and ability to meet the Change at
the most advantageous cost to IPE.
	 
	1.17  	From time to time, IPE may require access to CPS for the purposes of testing. IPE understands
that CPS does not form part of this Agreement and that Provider cannot make CPS available
without the specific written consent of the LCH. Accordingly, Provider shall only make such
CPS testing facility available to IPE after Provider has received such written consent from
LCH. Provider shall make every reasonable effort to obtain such written consent from the LCH
and shall consult with the IPE in circumstances where such consent is not forthcoming.
	 
	1.18  	Provider shall, from time to time, make available Updates to the IPE and shall promptly
notify the IPE of the release of such Update, together with the Acceptance Test Plans
applicable to such Update, and shall make available the Update as soon as reasonably
practicable after despatch of such notification.

	 	1.18.1  	Provider shall give to the IPE at least seven (7) Working Days’ notice of the date on
which delivery of the Update can be anticipated in preparation for the commencement of
such Acceptance Test Plans. Testing and analysis of the results shall be carried out in
accordance with Section 3, Stage 3 of this schedule.
	 
	 	1.18.2  	Upon an Update satisfactorily completing Acceptance Testing pursuant to sub-clause
1.18.1 above, the IPE shall install and implement the Upgrade.

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	 	1.18.3  	The version of the Provider Software which the IPE uses in live production shall be
no more than one release version behind Provider’s current release version.

	2.  	Change Control Procedure for any component of the Services (CCN1)
	 
	2.1  	The Change Control Procedure consists of three discrete stages, and is based upon information
supplied via a CCN1 Form. For a CCN1 to be deemed as complete, it must pass through the three
stages stated below before it constitutes a Change:
	 
	   	Stage 1 — Feasibility, Initial Assessment and pricing of the proposed Change (as
appropriate);
	 
	   	Stage 2 — Build, Test and Implementation; and
	 
	   	Stage 3 — Completion.

	2.2  	A CCN1 Form signed by both Parties at Stage 3 (completion) shall constitute a Change to a
relevant component of the Services.
	 
	2.3  	Stage 1 Feasibility, Initial Assessment and Pricing:

	 	2.3.1  	Both parties shall meet within five (5) Working Days of the receipt of the
CCN1 Form to formally agree whether further work is to be undertaken. If further work
is to be undertaken the work required for Stage 1 will commence within two (2) Working
Days of that meeting and shall be completed by the Provider within ten (10) Working
Days (unless agreement to the contrary is reached by the parties in the CCN).
	 
	 	2.3.2  	If no further work is to be undertaken the CCN1 Form will be filed by the
Service Delivery Manager and closed accordingly.
	 
	 	2.3.3  	The IPE shall use reasonable endeavours to ensure that the appropriate IPE
personnel are allocated and available to provide input to this stage of the process and
recognise that the timescales for implementation may be affected if such IPE personnel
are not made available in a timely manner. Agreement to proceed will require authority
by the IPE to accept charges associated with Stage 2. If no agreement is reached the
CCN shall be rejected or the IPE shall ask Provider to rework Stage 1.
	 
	 	2.3.4  	During the course of Stage 1, the documentation will be modified to reflect
its current status. Upon completion of Stage 1 the documentation will contain:

	 	2.3.4.1  	Initial feasibility assessment & price to implement; and
	 
	 	2.3.4.2  	Estimated total duration of Stage 2.

	   	

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	 	2.3.5  	During this stage the CCN1 will be given one of the following status comments:

	 	   	2.3.5.1   In progress;
	 
	 	   	2.3.5.2   Pending review;
	 
	 	   	2.3.5.3   Completed; or
	 
	 	   	2.3.5.4   Rejected or rework needed.

	2.4   	Stage 2 Build, Test and Implementation

	 	2.4.1  	This process will complete all activities necessary to build, test and
implement the CCN1.
	 
	 	2.4.2  	During this phase, the Provider shall ensure that appropriate resources are
available to support the build & tests and to rectify, in a timely manner as required
by implementation timescales specified in the appropriate CCN(s), any defects that
arise, through to implementation.
	 
	 	2.4.3  	IPE shall respond with agreement or not to proceed with Stage 2 within ten
(10) Working Days of the completion of Stage 1 (or as may be otherwise agreed by the
parties in the relevant CCN).
	 
	 	2.4.4  	Stage 2 shall be commenced by the Provider within ten (10) Working Days of
receipt by Provider of IPE’s agreement to proceed.
	 
	 	2.4.5  	The duration of Stage 2 shall be as agreed in Stage 1.
	 
	 	2.4.6  	During Stage 2 a CCN1 may have any one of the following statuses associated
with it:

	 	2.4.6.1  	Build in progress;
	 
	 	2.4.6.2  	Build complete;
	 
	 	2.4.6.3  	Test in progress;
	 
	 	2.4.6.4  	Test complete;
	 
	 	2.4.6.5  	Implementation in progress; or
	 
	 	2.4.6.6  	Implementation complete.

	2.5  	Stage 3 Completion

	 	2.5.1  	Completion will require the signature of the Service Delivery Manager and the
Contract Manager. The CCN1 will be registered as closed and a copy

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	 	   	filed by Provider. During Stage 3 completion the CCN1 will be given the status of
“Closed”.

	3.  	Change Control Procedure for TRS Functionality (CCN2)
	 
	3.1  	Any CCN2 affecting software supplied from any third party will be subject to agreement
between the Provider, IPE and the third party, hence all clauses in this section may be
subject to the aforementioned agreement.
	 
	3.2  	The Change Control procedure consists of four discrete stages, and is based upon information
supplied via a CCN2 Form.
	 
	3.3  	IPE shall be able to cancel any TRS Functionality Change at any time before the agreed
delivery date except in circumstances where a CCN requires development work and this has
already been started. Where IPE has cancelled a TRS Functionality Change, in consideration of
no development work having been commenced, the IPE shall be charged only for the actual
proportion of work carried out and any Charges in respect of expenditure agreed by Provider
and IPE which has been incurred by Provider under the cancelled TRS Functionality Change.
	 
	3.4  	For a CCN2 to be deemed as complete, it must pass through the four stages stated in paragraph
3.8 below before it constitutes a Change.
	 
	3.5  	Stages 1 and 2 may be completed more swiftly than anticipated in section five of this
Schedule where CCN2s relate to the launch of new IPE Contracts. Stage 3 shall concentrate on
the test and implementation phases rather than the Development phase.
	 
	3.6  	CCN2’s for the launch of new IPE Contracts shall be limited to no more than three new IPE
Contract launches per year. Additional IPE Contract launches over and above this shall require
the agreement of both parties.
	 
	3.7  	For CCN2s related to the launch of new IPE Contracts that require no development effort the
IPE shall give a minimum of four (4) weeks’ notice for the commencement of Stage 3. The
Provider shall commit that Stage 3 shall require no more than four (4) weeks elapsed time
before Acceptance Tests are commenced.
	 
	3.8  	The stages are:
	 
	   	Stage 1 — Feasibility and Initial Assessment of the proposed change;
	 
	   	Stage 2 — Detailed Analysis and Planning to include the preparation of the CCN2 for eventual
Development, Acceptance Test and Implementation;
	 
	   	Stage 3 — Development, Acceptance Test and Implementation; and

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	   	Stage 4 — Completion.
	 
	 	3.8.1 A CCN2 signed by both Parties at Stage 4 (completion) shall constitute a
change to the functionality of TRS.

	3.9  	Stage 1 Feasibility and Initial Assessment

	 	3.9.1  	Upon receipt of the CCN2 both parties shall meet within five (5) Working Days
to formally agree whether further work is to be undertaken in pursuit of the CCN2. If
further work is to be undertaken the Provider, in conjunction with IPE, will undertake
Stage 1 within ten Working Days from the agreement to proceed, subject to receipt of a
Business Requirements Definition.
	 
	 	3.9.2  	If no further work is to be undertaken the CCN shall be noted and closed
accordingly.
	 
	 	3.9.3  	It is the responsibility of IPE to ensure that the appropriate personnel are
allocated and available to provide input to this stage of the process. Agreement to
proceed will require authority by the IPE to accept the Charges associated with Stage
2.
	 
	 	3.9.4  	The IPE shall submit a Business Requirements Definition to Provider.
	 
	 	3.9.5  	Upon completion of Stage 1 the documentation derived from the Change Procedure
shall contain:

	 	3.9.5.1  	High level business requirements;
	 
	 	3.9.5.2  	Outline estimate of effort required for Stage 2;
	 
	 	3.9.5.3  	Outline estimate of elapsed time required for Stage 2;
	 
	 	3.9.5.4  	Outline estimate of costs for Stage 2;
	 
	 	3.9.5.5  	Outline estimate of effort required for CCN2;
	 
	 	3.9.5.6  	Outline estimate for elapsed time required for CCN2;
	 
	 	3.9.5.7  	Outline estimate of costs for CCN2; or
	 
	 	3.9.5.8  	Outline impact CCN2 will have upon the Service.

	 	3.9.6  	During this stage the CCN2 will be given one of the following status comments
by Provider:

	 	3.9.6.1  	In progress;
	 
	 	3.9.6.2  	Pending review;

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	 	   	3.9.6.3 Completed;
	 
	 	   	3.9.6.4 Next stage authorised; or
	 
	 	   	3.9.6.5 Cancelled.

	3.10  	Stage 2 Detailed Analysis and Planning

	 	3.10.1  	This process shall create the detailed business requirements and plans necessary to
prepare the CCN2 for eventual implementation. It is the responsibility of IPE to
provide detailed Acceptance Test Plans and to ensure that they are acceptable to all
Parties.
	 
	 	3.10.2  	The results of Stage 2 will be presented to the IPE as a basis for agreement to
proceed with the CCN2.
	 
	 	3.10.3  	If Stage 2 is not agreed the CCN2 may be referred back to the start of this stage, by
agreement of both Parties, for further analysis and re-presentation. Alternatively,
both Parties may close it following agreement.
	 
	 	3.10.4  	It is the responsibility of IPE to ensure that the appropriate personnel are
allocated and available to provide input to this stage of the process. Agreement to
proceed shall require authority by the IPE to accept the charges associated with Stage
3.
	 
	 	3.10.5  	Upon completion of Stage 2 the documentation derived from the Change Procedure will
contain:

	 	  	3.10.5.1 Detailed Business Requirements;
	 
	 	  	3.10.5.2 Detailed Functional Specification;
	 
	 	  	3.10.5.3 Detailed Acceptance Test plans;
	 
	 	  	3.10.5.4 Detailed Development plans;
	 
	 	  	3.10.5.5 Detailed Implementation plans;
	 
	 	  	3.10.5.6 Fixed charges for implementation based upon the Fee Rates; or
	 
	 	  	3.10.5.7 Committed implementation timescales

	 	3.10.6  	At this stage the CCN2 will be given one of the following status comments:

	 	   	3.10.6.1 In progress;
	 
	 	   	3.10.6.2 Pending review;

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	 	   	3.10.6.3 Completed;
	 
	 	   	3.10.6.4 Next stage authorised; or
	 
	 	   	3.10.6.5 Cancelled.

	3.11  	Stage 3 Development, Acceptance Test and Implementation

	 	3.11.1  	This process will complete all activities necessary to develop, test and implement
the CCN.
	 
	 	3.11.2  	It is the responsibility of the IPE to execute, manage and co-ordinate the Acceptance
Test Plans in conjunction with any third party.
	 
	 	3.11.3  	Provider shall give to IPE at least seven (7) Working Days notice of the date on
which delivery of the TRS Functionality change can be anticipated in preparation for
the commencement of the Acceptance Test Plans agreed at Stage 2 of the CCN2. Testing
and analysis of the results shall be carried out by IPE and any third party with the
co-operation of the Provider. IPE shall notify promptly in writing any incident in
relation to the Acceptance Test and the parties shall agree the priority of the
incident for resolution purposes.
	 
	 	3.11.4  	Provider shall use its reasonable efforts to remedy any failure of the Acceptance
Tests by whatever means are reasonably necessary including:

	 	  	3.11.4.1 provision of software fixes, updates or new releases;
	 
	 	  	3.11.4.2 provision of release notes for those fixes, updates or new releases;
	 
	 	  	3.11.4.3 keeping an up-to-date record of all test issue reports notified by IPE,
the action taken by Provider and the status of that test issue report (open,
closed or under change control); and making a copy of that record available
to IPE on request.

	 	3.11.5  	IPE shall promptly upon Provider complying with its obligations under clause
3.11.4,then repeat the Acceptance Tests. If the failures have been corrected, IPE shall
then sign an Acceptance Certificate for the CCN2.
	 
	 	3.11.6  	IPE shall not exercise its right to reject the CCN2 until the relevant CCN2 has
failed its Acceptance Tests on three separate occasions.
	 
	 	3.11.7  	When the CCN2 has passed its Acceptance Tests, IPE will issue an Acceptance
Certificate, which shall not be unreasonably withheld or delayed.

 Page 83

 

	 	3.11.8  	If the applicable CCN2 has failed repeat Acceptance Tests on three separate occasions
due to a failure of Provider then IPE shall be entitled to proceed under clause 3.11.9.
	 
	 	3.11.9  	On exhaustion of the procedure provided in clause 3.11.4 IPE may without prejudice to
its other rights or remedies:

	 	3.11.9.1  	accept the CCN2 as applicable subject to an adjustment to the price
therefor, such adjustment to be such amount as, taking into account the
circumstances, is reasonable. In the absence of written agreement as to the
adjustment within fourteen (14) days after the date of such notice IPE shall
be entitled to reject the CCN2 in accordance with clause 3.11.9.2; or

	 	3.11.9.2  	reject the CCN2 in which event Provider shall (without prejudice to IPE’s
other rights and remedies) forthwith refund to IPE all sums previously paid
to Provider directly in relation to that CCN.

	 	3.11.10  	During this phase, the Provider and IPE will ensure that appropriate resources are
available to support the process and to rectify, in a timely manner based on the
development timescales, any defects that arise. Should the Acceptance Test schedule be
extended at the request of IPE or a third party then the personnel allocated by the
Provider for test support purposes shall be charged on a time and materials basis in
accordance with the Fee Rates, from the original completion date until such time as the
Acceptance Tests are complete.
	 
	 	3.11.11  	At Stage 3 a CCN2 may have any one of the following statuses associated with it:

	 	3.11.11.1  	Development in progress;
	 
	 	3.11.11.2  	Development complete;
	 
	 	3.11.11.3  	Acceptance test in progress;
	 
	 	3.11.11.4  	Acceptance test complete;
	 
	 	3.11.11.5  	Implementation in progress; or
	 
	 	3.11.11.6  	Implementation complete.

	 	3.11.12  	Upon completion of Stage 3 the documentation derived from the process will contain
release documentation as necessary and agreed by both Parties.

 Page 84

 

	3.12  	Stage 4 Completion

	 	3.12.1  	Completion will require the signature of the Service Delivery Manager, and the
Contract Manager. The CCN2 will be registered as closed and a copy filed.
	 
	 	3.12.2  	At completion of Stage 4 the CCN2 will be given the status of “Closed”.

 Page 85

 

	4.  	CCN1 Timescales

	 	 	 	 	 	 	 	 	 
	 
	 	Activity	 	 	Timescale to Complete	 	 	Responsibility	 
	 	Issue and
acknowledge Receipt
of CCN 1

	 	 	Within 2 Working Days
of receipt of written
request
	 	 	Service Delivery Manager
& Contract Manager	 
	 	Meeting to discuss
whether further work
on CCN 1 to be
performed

	 	 	Within 5 Working Days
of acknowledgement of
receipt
	 	 	Service Delivery Manager
& Contract Manager	 
	 	Stage 1 Commencement

	 	 	Within 2 Working Days
of meeting to discuss
CCN 1
	 	 	Service Delivery Manager
& Contract Manager	 
	 	Stage 1 Completion

	 	 	Within 10 Days of
acknowledgement of
Stage 1 Commencement
	 	 	Service Delivery Manager
or Contract Manager.
Nominated Provider and
IPE personnel.	 
	 	Stage 2 IPE
agreement to proceed

	 	 	Within 10 days of
completion of Stage 1
	 	 	Contract Manager	 
	 	Stage 2 Commencement

	 	 	Within 10 days of IPE
agreement to proceed
	 	 	Service Delivery Manager	 
	 	Stage 2 Completion

	 	 	Within agreed
timescales as
specified prior to
commencement of Stage
2
	 	 	Provider, IPE and
appropriate resource.	 
	 	Stage 3 Completion

	 	 	As defined in Stage 2
	 	 	Provider & IPE	 
	 

	5.  	CCN2 Timescales

	 	 	 	 	 	 	 	 	 
	 
	 	Activity	 	 	Timescale to Complete	 	 	Responsibility	 
	 	Issue and acknowledge
Receipt of CCN

	 	 	Within 2 days of
receipt of written
request
	 	 	Service Delivery
Manager & Contract
Manager	 
	 	Stage 1 Commencement

	 	 	Within 2 days of
receipt of CCN
	 	 	Provider & IPE	 
	 	Stage 1 Completion

	 	 	Within 10 Days of
acknowledgement of
CCN
	 	 	Service Delivery
Manager or Contract
Manager. Nominated
Provider and IPE
personnel.	 
	 	Stage 2 Authority to proceed

	 	 	Within 10 days of
completion of Stage
1 commencement
	 	 	IPE	 
	 	Stage 2 Commencement

	 	 	Within 10 days of
authority to proceed
	 	 	Provider, IPE and LCH	 
	 	Stage 2 Completion

	 	 	Within agreed
timescaIes as
specified in Stage 1
	 	 	Provider, IPE and LCH	 
	 

Page 86

 

	 	 	 	 	 	 	 	 	 
	 
	 	Activity	 	 	Timescale to Complete	 	 	Responsibility	 
	 	Stage 3 Commencement

	 	 	Within agreed
timescales as
specified prior to
commencement of
Stage 3
	 	 	Provider, IPE and
appropriate
resource.	 
	 	Stage 3 Completion

	 	 	As defined in Stage 2
	 	 	Provider & IPE	 
	 	Stage 4 Completion

	 	 	As defined.
	 	 	Provider & IPE	 
	 

6. Emergency Changes

It may be necessary from time to time for Provider to introduce changes to the Service on an
emergency basis (with the exception of TRS Functionality Changes which shall always follow the CCN2
procedure in this schedule), and such emergency Changes being strictly necessary to ensure
continuity of the Service. In such exceptional circumstances the procedures described in this
schedule may not be adhered to. For the purposes of this schedule, an “emergency Change” is one
which in the reasonable opinion of the Provider is required to ensure that service continuity is
maintained and not interrupted.

Within twenty-four (24) hours following the implementation of any such emergency Change, Provider
shall provide the Contract Manager with a documented explanation of the Change.

Page 87

 

Appendix A to schedule Eight

Change Control Notification CCN1

	 	 	 	 	 
	 	Change Control Notification One (1) - Changes to the Services (Excluding TRS Functionality)	 
	 	CCN1 No. (Provider will issue)
	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Section 1: Requestor Details & Authorisation	 
	 	 	 	 	 	 
	 	Requestor Name:

	 	 	Date of Request      /     /     	 
	 	                                                  
	 	 	 	 
	 	 	 	 	 	 
	 	Change description:

	 	 	Emergency Change – YES/NO
	 
	 	

	 	 	 	 
	 	

	 	 	Continued on separate sheet – YES/NO	 
	 	 	 	 	 	 
	 	Reason for Change

	 	 	 	 
	 	

	 	 	 	 
	 	 

	 	 	Continued on separate sheet – YES/NO	 
	 	 	 	 	 	 
	 	Authorisation:
	 	 	 	 
	 	

	 	 	 	 
	 	Name                                         

	 	 	     Signature:                                         	 
	 	

	 	 	 	 
	 	Date:      /     /     
	 	 	 	 
	 	

	 	 	 	 
	 	Service Delivery Manager:
	 	 	 	 
	 	

	 	 	 	 
	 	Date Received:      /     /     

	 	 	     Date of Received:      /     /     	 
	 	

	 	 	 	 
	 	Name                                         

	 	 	     Signature:                                         	 
	 	 	 	 	 	 
	 	Section 2: Receipt Verification & Stage 1 Completion (provider only)	 
	 	 	 	 	 	 
	 	

	 	 	 	 
	 	Date Received:      /     /     

	 	 	Contract Manager Name:                                         	 
	 	

	 	 	 	 
	 	

	 	 	          Signature:                                         	 
	 	

	 	 	 	 
	 	Date Logged:      /     /     

	 	 	CCN1 Number Issued:      /     /     	 
	 	

	 	 	 	 
	 	Acknowledgment Sent      /     /     

	 	 	(Must be within two working days of receipt date)	 
	 	 	 	 	 	 

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Stage 1 Commencement – (Feasibility, Initial Assessment
and pricing of the proposed change)
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	Status Titles:
	

	 	 	 	 	 	 	 	 	 
	1.

	 	Date:
	 	___/___/___ 	 	Assign Status:
	 	 	1.	In progress 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	2.	 Pending review
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	3.	 Completed
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	4.	 Rejected or rework needed
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 
	Stage 1 Completion – (Authorisation to proceed to Stage 2 By signing this section, the
originator of the change agrees to accept the cost of completion)

	 
	 	 	 	 	 	 	 	 
	Cost of Change:
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Provider Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date: ___/___/___
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	IPE Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date: ___/___/___
	

	 	 
	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stage 2 Commencement – (Build test & implement)

	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	Status Titles:
	 	
	

	 	 	 	 	 	 	 	 	 	 	 
	1.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	1.	Build in progress
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2.
	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	2.	Build complete
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	3.	Test in progress
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	4.	Test complete
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	5.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	5.	Implementation in progress
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	6.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	6.	Implementation complete
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	
Stage 2 Completion – (Authorisation to proceed to Stage 3)

	 
	
Provider Agreement
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date: ___/___/___
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	
IPE Agreement
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date: ___/___/___
	 
	 	 
	 	 	 	 	 	 
	 

Page 89

 

	 	 	 	 	 	 	 
	 	 	 
	 	Stage 3 Completion – (Authorisation to close CCN1 and accept changes)	 
	 	 
	 	 	 	 	 
	 	Provider Agreement
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	Name:                                         

	 	Signature:                                         
	 	Date:      /     /     	 
	 	 
	 	 	 	 	 
	 	IPE Agreement
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	Name:                                         

	 	Signature:                                         
	 	Date:      /     /     	 
	 	 
	 	 	 	 	 
	 	Change Requestor Agreement
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	Name:                                         

	 	Signature:                                         
	 	Date:      /     /     	 
	 	

	 	 	 	 
	 	 	 
	 	Administration
	 	 	 	 	 
	 	CCN1 Filed
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	Name:                                         

	 	Signature:                                         
	 	Date:      /     /     	 
	 	 
	 	 	 	 	 
	 	Invoice details passed to accounts
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	Name:                                         

	 	Signature:                                         
	 	Date:      /     /     	 
	 	

	 	 	 	 
	 	 	 

Page 90

 

Appendix B to schedule Eight

Change Control Notification CCN2

	 	 	 	 	 
	 	Change Control Notification Two (2) – TRS Functionality Changes	 
	 	CCN2 No. (Provider will issue)
	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Section 1: Requestor Details & Authorisation	 
	 	 	 	 	 	 
	 	Requestor Name:

	 	 	Date of Request      /     /     	 
	 	                                                  
	 	 	 	 
	 	 	 	 	 	 
	 	Change description:

	 	 	Emergency Change – YES/NO
	 
	 	

	 	 	 	 
	 	

	 	 	Continued on separate sheet – YES/NO	 
	 	 	 	 	 	 
	 	Reason for Change

	 	 	 	 
	 	

	 	 	 	 
	 	 

	 	 	Continued on separate sheet – YES/NO	 
	 	 	 	 	 	 
	 	Authorisation:
	 	 	 	 
	 	

	 	 	 	 
	 	Name                                         

	Signature:                                         
     Date:      /     /     	 
	 	

	 	 	 	 
	 	Service Delivery Manager:
	 	 	 	 
	 	

	 	 	 	 
	 	Date Received:      /     /     

	 	 	     Date of Received:      /     /     	 
	 	

	 	 	 	 
	 	Name                                         

	 	 	     Signature:                                         	 
	 	 	 	 	 	 
	 	Section 2: Receipt Verification & Stage 1 Completion (provider only)	 
	 	 	 	 	 	 
	 	

	 	 	 	 
	 	Date Received:      /     /     

	 	 	Contract Manager Name:                                         	 
	 	

	 	 	 	 
	 	

	 	 	          Signature:                                         	 
	 	

	 	 	 	 
	 	Date Logged:      /     /     

	 	 	CCN2 Number Issued:      /     /     	 
	 	

	 	 	 	 
	 	Acknowledgment Sent:      /     /     

	 	 	(Must be within two working days of receipt date)	 
	 	 	 	 	 	 

Page 91

 

	 	 	 	 	 	 	 	 	 	 
	Stage 1 Commencement – (Feasibility, Initial Assessment)
	 	 	 
	 

	 	 
	 	 
	 	 
	 	 	Status Titles:
 
	1.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	1. In progress
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	2.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	2. Pending review
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	3.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	3. Completed
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	4.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	4. Next stage authorized
	 	 	 	 	 	 	 	 
	5.

	 	Date:
	 	___/___/___
	 	Assign Status:	 	 	5. Cancelled
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 
	Stage 1 Completion – (Authorisation to proceed to Stage 2 By signing this section, the originator of the
change agrees to accept the cost of next stage)

	 
	 	 	 	 	 	 	 	 	 	 
	Provider Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	IPE Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 
	Stage 2 Commencement – (Detailed analysis and planning)
	 	 	 
	 

	 	 	 	 	 	 	 	 	Status Titles:
 
	1.

	 	Date:
	 	___/___/___
	 	Assign Status:	 	 	1. In progress
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	2.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	2. Pending review
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	3.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	3. Completed
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	4.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	4. Next stage authorised
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	5.

	 	Date:
	 	___/___/___
	 	Assign Status:	 	 	5. Cancelled
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 
	Stage 2 Completion – (Authorisation to proceed to Stage 3)

	 
	 	 	 	 	 	 	 	 	 	 
	Cost of Change
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Provider Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	IPE Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

 

Page 92

 

	 	 	 	 	 	 	 	 	 	 	 	 
	Stage 3 Commencement – (Development test and implement)
	 	 	Status Titles:
	 
	 	 	 	 	 	 	 	 	 	 	 
	1.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 1.
	 	Development in progress
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	2.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 2.
	 	Development complete
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	3.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 3.
	 	Acceptance test in progress
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	4.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 4.
	 	Acceptance test complete
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	5.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 5.
	 	Implementation in progress
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	6.

	 	Date:
	 	___/___/___
	 	Assign Status:
	 	 	 6.
	 	Implementation complete
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Stage 3 Completion – (Authorisation to proceed to Stage 4)
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Provider Agreement
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	IPE Agreement
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	Stage 4 Completion – (Authorisation to close CCN2 and accept changes)
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Provider Agreement
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	IPE Agreement
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Change Requestor Agreement
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	Administration
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CCN2 Filed
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Invoice details passed to accounts
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Signature:
	 	 	 	Date:
	 	___/___/___
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

Page 93

 

SCHEDULE NINE

Security

	1.  	Purpose
	 
	1.1  	This schedule addresses:

	 	•  	access to the Provider Production Environment. This includes system, application,
local and remote access;
	 
	 	•  	data security. This includes the requirements to restrict the screen/panels, data
presented and fields to selected groups of users; and
	 
	 	•  	physical security. Applicable to locations and equipment where the IPE data is held
and/or from which the Services are delivered.

	1.2  	The right of audit and confidentiality are addressed in the following appendices:

	 	•  	Audit Access — Appendix one; and
	 
	 	•  	Confidentiality — Appendix two.

	1.3  	References to security in this schedule refer to security from risk of loss, misuse, theft,
damage and destruction, as applicable, of the relevant item.
	 
	2.  	Requirements
	 
	2.1  	Connectivity
	 
	 	2.1.1  WAN/LAN
	 
	   	Provider will ensure that all TRS Hardware installed on the Provider Premises and Network
Hardware deployed on the IPE premises is situated in areas with adequate physical security
controls. IPE shall be responsible for establishing and maintaining adequate physical
security controls at the IPE Premises. The Provider will ensure that all IPE Member firms
are advised of the necessary physical security standards required prior to the installation
of TRS Hardware on IPE Member firm premises.
	 
		2.1.2  Dial Up
	 
	   	Provider shall demonstrate that any dial up access to the Provider Production Environment is
secured by a recognised security product (e.g. Secureld).

 Page 94

 

	2.2  	Passwords

	 	2.2.1  	All access to the system shall be controlled by username and password.
Passwords shall be of a minimum length, have no repetition within an agreed period and
be forcibly changed on a monthly basis.
	 
	 	2.2.2  	All unused accounts shall be automatically de-activated after one (1) Month.

	2.3  	System Access

	 	2.3.1  	Provider shall ensure that any required update access to:

	 	•  	a the operating system;
	 
	 	•  	the database; and
	 
	 	•  	the application code

is controlled by only allowing such access to specific Provider staff who are authorised and
where such authority is required to ensure proper functioning of the System.

	2.4  	Application Access

	 	2.4.1  	Provider’s application shall provide the following levels of security access:

	 	2.4.1.1  	TRS functionality — view, add, change data

	 	2.4.2  	Provider’s application shall provide a rules based facility that allow subsets
of the Data to be presented to the User. They shall include:

	 	2.4.2.1  	all Data;
	 
	 	2.4.2.2  	Data by Member; and
	 
	 	2.4.2.3  	by category of Member e.g. locals, clearing members and others.

	 	2.4.3  	It shall be possible to group the functional and data security items into a
profile. The profiles would then be allocated to users.
	 
	 	2.4.4  	Provider shall ensure that changes to the application are tested before
release into the Provider Production Environment e.g. a typical change might be the
development of a new category of Member.

 Page 95

 

	2.5  	Protection Of Data

	 	2.5.1  	The Provider will comply with the Data Protection Act 1998 (and any subsequent
supplemental or modifying legislation).

	2.6  	Audit, Reporting and Security Reviews

	 	2.6.1  	Appropriate audit trail mechanisms must be enabled on key systems including:

	 	•  	Accounting (including login failures and process termination states);
	 
	 	•  	Auditing (including changes to accounts and break in attempts); and
	 
	 	•  	TCP logging (including records of all TCP/IP connections to the systems).
	 
	 	From time to time the Provider may change the level of auditing required and such
changes will use the Provider internal change control process Any significant audit
changes will follow schedule 8 (change control)

	 	2.6.2  	The Provider shall use the Provider Serious Incident Management service (as
described in schedule 2) to respond to any serious information security incidents.
	 
	 	2.6.3  	The Provider will host a six monthly information security forum to review
events within the previous period and, where appropriate, present any proposed
improvements for the next period.

	2.7  	Physical

	 	2.7.1  	Provider shall be responsible for maintaining the technical infrastructure
used to provide the Services. This shall include but not be limited to the specific
responsibilities set out below in this schedule.
	 
	 	2.7.2  	Provider shall be responsible for ensuring the physical location where the
Service is delivered is secure. Access to the location shall be via a recognised
mechanism, e.g. swipecard, keypad etc. All Provider Production Environment will be
housed within appropriately managed industry standard machine rooms.

	2.8  	Security Management

	 	2.8.1  	During Core Hours, Provider shall create, amend and delete IPE users’ access
rights to the applications within a timescale to be agreed as part of the Service
Levels.

 Page 96

 

	 	2.8.2  	The IPE shall endorse all requests for access rights. The request forms shall
be endorsed by an approved signature or any auditable mechanism agreed between the
Contract Manager and Service Delivery Manager. The time taken for the IPE to endorse
requests will not count towards the SLA targets.
	 
	 	2.8.3  	The IPE reserves the right to refuse a request for access rights even if it
has been endorsed by Provider’s management and, in the event that this occurs, the IPE
will notify Provider’s management of the refusal and of the reason(s) for the refusal
which shall not be unreasonable.
	 
	 	2.8.4  	Provider shall provide technical support for all security features running on
the systems used to provide the Services during Core Hours. Outside Core Hours this
support will be provided as soon as reasonably practical. These include, without
limitation, operating systems, databases and hardware security devices.
	 
	 	2.8.5  	On commencement of this Agreement, Provider shall appoint or nominate a
representative to be a specific point of contact on any security matters or concerns in
relation to provision of the Services.
	 
	 	2.8.6  	The IPE shall provide Provider with a contact roster for the IPE staff to
address security related production problems impacting service levels for the Services.

 Page 97

 

Appendix One — Audit

	 	Upon receipt of a written request the Provider shall within one calendar month provide, at
reasonably commercial rates:
	 
	 	•  	Data, as specified in clause 21, taken from existing records held by the Provider;
and
	 
	 	•  	Access, at the Provider’s discretion, to its relevant staff to present any data
provided. Access shall not be unreasonably withheld.

 Page 98

 

Appendix Two — Confidentiality

	 	In providing the TRS Provider will ensure that all Data on the System is held securely and
in particular that:
	 
	 	•  	appropriate back ups of both the system and standing data are maintained in line
with the commercially reasonable efforts that the Provider uses for its own data should
these be required; and
	 
	 	•  	confidentiality will be maintained in accordance with the specifications of clause
23.

 Page 99

 

SCHEDULE TEN

Operating Manual

Chapter 1

About This Guide

Structure of the Guide

This guide is intended for LIFFE Members’ staff who use the Trade Registration
System (TRS), Kerb TRS and the Clearing Processing System (CPS), on the market floor
and in their back offices. These three systems are together known as TRS/CPS. This
is a complete guide to using TRS/CPS, containing general operating instructions as
well as instructions for using all TRS, Kerb TRS and CPS trading and position
management functions. The guide is divided into the following sections:

	 	 	 	 	 
	

	 	TRS/CPS

Basics
	 	This section — a comprehensive introduction to the use of TRS
and CPS. Along with an overview of the structure of the entire
guide, it includes an overview of the functions and background
processing involved in all aspects of TRS/CPS usage, a guide
to starting to use the systems for the first time, and general
operating instructions that apply throughout all TRS/CPS
functions.
	 
	 	 	 	 
	

	 	TRS Section
	 	A guide to TRS functions — these relate to the registration
and matching of trades on the day that they are traded — and
to the processing behind these functions.
	 
	 	 	 	 
	

	 	Kerb TRS

Section
	 	A guide to Kerb TRS functions — these relate to the Section handling of defaulted trades on the day after trading — and to
the processing behind these functions.
	 
	 	 	 	 
	

	 	CPS Section
	 	A guide to CPS functions — these relate to the clearing of the
current trading day’s registered trades and to position
maintenance — and to the margining and other clearing
processing behind these functions.
	 
	 	 	 	 
	

	 	Reference

Section
	 	Reference information that will be useful to users of all TRS,
Kerb TRS and CPS functions, comprising a glossary of futures
and options terminology, a troubleshooting guide and a Quick
Reference guide which includes tables of useful system-related
information, such as search codes, search parameters and
report codes, as
	 
	 	 	 	 
	

Page 100

 

	 	 	 	 	 
	

	 	 	 	well as market data such as contract codes, delivery timetables and time bracket codes.

For more detailed information on the contents of the other sections of this user guide, see the
introductory chapters of the relevant sections.

The following chapters appear in this section of the TRS/CPS User Guide, TRS/CPS Basics, after this
chapter:

	 	 	 
	Introduction
to TRS/CPS
	 	An overview of TRS/CPS, including the objectives and scope
of the system, an introduction to the functions of TRS, Kerb
TRS and CPS, and an explanation of the connections between
these three components of the TRS/CPS system, and an
illustration of the system’s interfaces with the LCH and
members’ back office systems.
	 	 	 
	 	 	It is recommended that, if you are new to TRS/CPS, you read
this chapter first, even if you do not intend to use the
system personally.
	 	 	 
	General

Operating
	 	This chapter provides all the general information required to
use TRS/CPS. It includes:

	 	•  	How to log on, use the main menu, and enter commands.
	 
	 	•  	Standard key functions.
	 
	 	•  	Explanations of trade and notification status codes, and ‘ghost’ trade details, which are fundamental to
understanding TRS/CPS.
	 
	 	•  	Search codes and search parameters.
	 
	 	•  	How to make trade/position selections, an activity which is central to several TRS/CPS functions.

	 	 	 
	 	 	If you intend to use TRS from a DMI (Direct Member Input)
terminal, it is essential that you read this chapter before
you do so.
	 	 	 
	Exchange

Routing
	 	Describes the ‘exchange routing’ facility on TRS/CPS, that
allows you to use TRS/CPS on a single terminal to access
trade information relating to all exchanges that use TRS/CPS
for clearing and are cleared by the LCH.
	 	 	 
	Reporting
	 	Contains an explanation of how to use the Display/Print
Report function to print or display reports throughout the
day, and to access the TRS/CPS overnight printing facility.
	 	 	 
	

Page 101

 

Conventions Used in the
Guide

The following formatting conventions have been used throughout the TRS/CPS User Guide:

	 	•  	Key names are shown in bold and enclosed in square brackets. For example,
[Return], [Do].
	 
	 	•  	Variable input is shown in lower case italic letters, and enclosed in angled
brackets. For example, <password>, <username>.
	 
	 	   	For example, if you are told to enter <username>, you should enter the
appropriate username, and not the text “<username>”.
	 
	 	•  	TRS/CPS short function names, search codes and parameters, and TRS/CPS
report codes, are shown in capital letters. For example, ENQ, OK, IN, UT, C=R,
CMR, HIT, $VOL.
	 
	 	•  	Screen field names, when described in full, appear in bold, with the
description indented to the right, in normal text. For example:

	 	Date        	The date on which the position is held. This will be
the current date, unless you specified a search for historical data.

	 	•  	Where a reference to a field appears within normal text, the field name also
appears in bold. For example:

The cursor appears in the Operation field at the bottom of the screen.

Page 102

 

LIFFE Contacts

LIFFE welcomes your comments about the content of this document. Revisions and
improvements will be incorporated in future editions where possible. You should
always ensure that you have the latest version of the guide.

If you encounter problems while using TRS/CPS, or you wish to discuss any aspect of TRS, Kerb TRS
or CPS, to receive training or to make suggestions for the improvement of the available facilities,
please contact the appropriate department, as follows:

	 	 	 	 	 
	

	 	TRS enquiries or training,

trade-related enquiries
	 	Pam Sellar

LIFFE Trading Operations

0171-379 2656 / 0171-379 2659

	 
	 	 	 	 
	

	 	CPS support
	 	Tina Apicella

LIFFE Market Supervision

0171-379 2844
	 
	 	 	 	 
	

	 	Problems and faults
	 	LIFFE Helpdesk

0171-379 2233 / 071-379 2255

Page 103

 

Chapter1

Introduction to TRS/CPS

Overview

The Trade Registration System (TRS) was developed and introduced for financial options contracts on
3rd September 1987. By the end of 1988, after a phased implementation, all LIFFE contracts were
operational on TRS. Shortly after this, the Clearing Processing System (CPS) was introduced and
added to TRS to form an integrated trade registration and clearing system. Following the subsequent
incorporation into LIFFE of both LTOM and, later, the LCE, the TRS/CPS service has been further
extended to cover equity and index options, and commodity futures and options.

The TRS/CPS system has been enhanced and developed since it was first released, with version 7.2
bringing the new functions of Kerb TRS, that can be used to handle defaulted business on the day
after trading.

This chapter provides a comprehensive introduction to the use of TRS, CPS and Kerb TRS, and
explains the way in which these systems work together, the processing behind them and the flow of
data into and out of them.

The TRS, CPS and Kerb TRS systems work together to process all your exchange business, from the
time it is traded and entered into the system, through the matching of trade details with those
entered by other exchange members, the maintenance and settlement of positions, and the calculation
of margins, to the delivery/expiry of positions.

The three systems are completely integrated and cannot be accessed independently, so
that when you log into a TRS/CPS session, you will see a main menu containing all
the functions of TRS, Kerb TRS and CPS. The three systems have different uses,
however, and their functions are grouped separately on the menu screen. Each system
allows access to trade data at a different stage in its registration and clearing

cycle, as follows:

	 	 	 	 	 
	

	 	TRS
	 	This is used for the entry of trade, allocation and claim
details. TRS matches trade details entered by the two parties
concerned. Matched trades can then be split, allocated, claimed
or assigned, before being registered and passed automatically to
CPS for clearing.
	 
	 	 	 	 
	

	 	Kerb TRS
	 	This is used to handle trades that have not been assigned or
allocated, and claims and allocations that have failed to match,
on the day that they were entered into the system. These
defaulted trades are automatically assigned to members’
	 
	 	 	 	 
	

Page 104

 

	 	 	 	 	 
	

	 	 	 	Default accounts during overnight clearing processing. They can then be
resolved on the following trading day using the functions of Kerb
TRS. When they are resolved, CPS position-keeping accounts will
automatically be updated to reflect any corrections.
	 
	 	 	 	 
	

	 	CPS
	 	Once trades have been registered using TRS or Kerb TRS, they are
passed automatically to CPS, and CPS positions will be updated
accordingly, CPS provides the Exchange and its members with
real-time position-keeping facilities and with functions for the
entry of position transfer, settlement, delivery and option
exercise instructions. CPS also handles the processing behind any
position changes, as well as changes to the Exchange’s
membership. It calculates all margins, and performs position
rollovers for open and tendered positions, before sending
processed data to the LCH for reconciliation on a daily basis.

Principles of TRS/CPS

TRS/CPS terminals are available for installation in members’ back offices and market
floor administration booths. On these terminals, you can view all your trading
activity and monitor the status of each trade. You can use TRS functions to assign,
allocate and claim trades, and to add order card and account references. You can use
Kerb TRS functions to resolve defaulted trades and claims, and thereby transfer them
to the correct position-keeping accounts. You can also use CPS functions to monitor,
transfer and close out positions, and to enter exercise and delivery notifications.

A valuable aid to using TRS/CPS is the built-in help system. While you are using any TRS/CPS
function, you can press [Help] to display a line of help text for the current field, that includes
the valid entries for the field.

Below, you will find a description of each of the different stages of the TRS/CPS processing cycle,
in a logical sequence from trade entry to expiry.

Trade Entry and Registration

The TRS functions of TRS/CPS are used to enter trades and claims into the system, and to ensure
that they are correctly matched and reach registered status.

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All trades and claims are given a status code when they are entered, and these codes are changed
automatically by the system, to indicate their progress through the TRS/CPS trade registration and
clearing cycle. The next chapter, General Operating, includes full details of the way in which
trade status codes are used by TRS/CPS.

In addition to trade/claim entry, TRS also allows you to perform the following operations:

	 	•  	Assign trades to the appropriate position-keeping accounts.
	 
	 	•  	Allocate (give-up) trades to other exchange members.
	 
	 	•  	Claim trades executed for you by other exchange members.
	 
	 	•  	Identify and resolve mismatched trades and allocations.
	 
	 	•  	Amend unmatched trade details
	 
	 	•  	Delete unmatched trades
	 
	 	•  	Split trades.

DMI (Direct Member Input) Terminals

You can enter trade details into the Trade Registration System either by submitting clearing slips
to LIFFE TRS staff in the Central Matching Area on the market floor (for them to enter the
details), or you can use your own DMI (Direct Member Input) terminal in your administration booth
on the exchange floor.

LIFFE maintains the Central Matching Area for those members that do not have DMI terminals, and as
a general enquiry desk to help members with any trading-related queries.

DMI screens appear identical to the TRS screens in use in back offices. All TRS functions that are
available for use on back office terminals, can be used on DMI terminals. In addition, trade entry
functions are available for use on DMI terminals only.

DMI terminals may be used to enter trader-to-trader cross-trades, but not other types of
cross-trade, which must be submitted to LIFFE TRS staff on clearing slips, using the normal
procedures. Furthermore, you cannot use any CPS functions on DMI terminals.

Trade Registration Procedures

LIFFE aims to ensure that members have the most up-to-date and reliable information available to
them, in the form of TRS/CPS reports and enquiries, throughout the day and, particularly, at the
end of each trading day, in order to assist them in making their trading and processing decisions.

Page 106

 

Accordingly, LIFFE aims to have all floor trades matched, assigned, allocated and claimed by 18:00
on a normal business day, all APT trades assigned, allocated and claimed by 18:30 and all FAST
trades assigned, allocated and claimed by 19:00.

To achieve this objective, it is important that you observe the following procedures that
have been specified by LIFFE:

	 	•  	You must enter and match all trades and claims within 30 minutes of their execution.

	 
	 	  	TRS automatically identifies corresponding half-trades entered by two counterparties,
and marks them as matched.
	 
	 	•  	You must assign all trades to an account — one of Segregated Client, Non-Segregated
Client, House, Local or Market Maker — these correspond to the margining accounts
maintained by the LCH. If you pass a trade slip to a TRS staff member for input, you
can mark this information on the slip.
	 
	 	•  	You must claim trades allocated (given up) to you, and subsequently assign or
re-allocate them.
	 
	 	•  	You are allowed a further 30 minutes, after the 30 minutes that is allowed for entry
and matching, in which to assign and allocate and claim trades, if this was not
initially done

All trades should therefore be fully resolved within 60 minutes of their execution.

If you do not observe the above time limits, LIFFE TRS staff will attempt (but not guarantee) to
identify outstanding trades and claims and bring them to your attention. You must try to resolve
them. If these trades and claims cannot be resolved by the end of the trading day, the following
will occur:

	 	•  	Any trades that have not been assigned to a position-keeping account, or allocated
to another member, will be assigned to your Default account.
	 
	 	•  	Any trades that you have allocated, that have not been claimed, will be assigned to
your Default account.
	 
	 	•  	Any claims you have made for which there are no corresponding allocations, will be
cancelled for the current trading day.

All of the above business will appear again in Kerb TRS on the following trading day.

Handling Defaulted Business

For all LIFFE futures and options contracts, any unassigned trades or failed allocations that have
been assigned to your Default account at the end of the day, and any claims

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that remained unmatched at the end of the day, may be resolved and processed the following
trading day using the functions of Kerb TRS.

When you use Kerb TRS to resolve defaulted business, CPS position transfer notifications
will automatically be generated by the system, and the registered position will be moved to
the correct destination, as follows:

• Unassigned trades

The position will be transferred from your Default account to the appropriate
position-keeping account.

• Failed allocations

The position will be transferred from your Default account to the allocatee member’s Default
account, as soon as the allocatee member confirms the trade.

• Unmatched claims

When the counterparty enters a matching allocation, the position will be transferred from
the counterparty’s Default account to your Default account. When you assign the trade, it
will then be transferred again from your Default account to the appropriate position-keeping
account.

Note that, if unmatched claims are not resolved on the day after trading, they are retained
in Kerb TRS to the following day for in formation purposes only. These positions will not be
transferred automatically to your Default account when the counterparty enters a matching
allocation. You must delete the old claim and enter a new one to match the allocation.

The position transfers that are generated in this way can be displayed using the CPS
Position Transfer function. They cannot be amended.

Once defaulted business has been resolved, as described above, you will be unable to access the
affected Kerb trades.

At the end of each trading day, any of the previous day’s unresolved business that remains in Kerb
TRS will be replaced by the current day’s defaulted business. Therefore, If you do not resolve your
defaulted business, using Kerb TRS, on the day after it has been traded, you will not be able to
use Kerb TRS to access it on any subsequent day.

Furthermore, you should contact the TRS Trade Enquiry Desk if you wish to make any other
corrections to positions resulting, for example, from the entry of incorrect trade details, the
failure to enter trades or the reversal of settlements.

Page 108

 

Position Maintenance and Clearing

Business that has been matched and registered successfully using TRS is automatically incorporated
into the appropriate CPS positions. In addition, CPS positions are updated automatically whenever
defaulted trades are resolved using Kerb TRS. These CPS positions will be processed by CPS at the
end of the day, in order to:

• Calculate positions to be carried forward to the following trading day.

• Calculate margins.

• Produce reports

• Reconcile trade data with the LCH

Position Maintenance

CPS positions are immediately updated automatically by TRS, whenever a trade or claim is correctly
matched, and reaches ‘registered’ status, or by Kerb TRS, whenever a position transfer is generated
automatically. The sooner you match, allocate and assign trades after they have been executed, the
more up-to-date your CPS positions will be.

Two separate screen enquiry functions are available, that allow you to display the following
data at exchange member level:

• Open positions

• Positions that are under tender for delivery.

CPS also provides functions that allow you to:

• Transfer positions between different position-keeping accounts, or between different
exchange members’ accounts.

• Close out positions that are maintained on a gross basis (ie. that are not closed
out automatically).

• Enter delivery notifications for futures contracts in their delivery period.

• Exercise options.

• Specify parameters to control the automatic exercise of options on expiry.

Clearing

At the end of each day, CPS provides the LCH (London Clearing House) with information to
enable the LCH to register all trades, and to perform its banking, cover calling, delivery
administration and risk management functions.

Page 109

 

In order to do this, CPS performs the following clearing processing operations:

	 	•  	Manually entered settlement, position transfer, exercise and delivery instructions
are processed. Exercised options are assigned to holders of short positions on a random
basis.

	 	•  	For equities, if trades have been specified as closing trades, the corresponding
open position is closed out automatically.

 

	 	•  	For accounts that are maintained on a net basis, (ie. house, market maker and
local), automatic settlement is performed wherever possible.

 

	 	•  	Expired options are deleted from positions.

 

	 	•  	The delivery process is started for futures that have reached their delivery date,
and they are removed from open positions, and placed under tender.

  

	 	•  	Automatic option exercise is performed.

   

	 	•  	 Any cash settlements that result from delivery, option exercise or open positions,
are calculated.

    

	 	•  	 Margins are calculated for each clearing member.

Reporting

One of the main aims of TRS/CPS is to provide users with as much up-to-date information as possible
on their trades and positions, to assist them in making trading-related decisions.

Each of the TRS/CPS systems, TRS, Kerb TRS and CPS, makes information available in real-time, on
its enquiry screens. TRS can display trades, allocations and claims on the day that they are
entered, Kerb TRS can display defaulted business on the day after trading and CPS can display
aggregate open positions, based on registered business, updated throughout the trading day, as well
as futures positions under tender for delivery.

In addition to making trade and position information available on its enquiry screens,
TRS/CPS also generates a large number of reports on all trade and position data held within
the system, on calculated margins and open interest, on instructions entered into the
system, on relevant market parameters and data, and so on. Reports are available, as
appropriate, at exchange member, clearing member and exchange level.

Many TRS reports are available throughout the trading day, and are updated in real-time. CPS
reports are generally calculated at the end of each day, and are available for printing overnight,
or on the next business day.

Page 110

 

As well as TRS and CPS reports, a number of LCH reports are also available via the standard TRS/CPS
reporting function, Display/Print Report, menu option 3.

Reports are described and illustrated in the section of this guide to which they relate. For full
details of the reports that are available, see the Reporting chapter in the relevant section. For
details of how to print or display reports, see chapter 5, Reporting, in this section.

Exchange Routing

‘Exchange routing’ is a facility that allows you to use a single TRS/CPS terminal to access trading
information relating to the IPE (International Petroleum Exchange), as well as all your LIFFE
business.

Currently, for the purposes of exchange routing, LIFFE financial futures and options, LIFFE equity
and index options and LIFFE commodity futures and options are treated as three separate exchanges.

The terminal can be logged on to the IPE at the same time as it is logged on to any of the LIFFE
‘exchanges’, but it may only be actively used on one of these at a time. Although the functionality
of the TRS/CPS system is the same for each exchange, TRS/CPS operates completely independently for
each exchange. Trade data is stored separately for each exchange, and reports and enquiries cannot
show information relating to trading on more than one exchange. Usernames and passwords are also
different for each exchange.

LIFFE and the IPE retain separate responsibility for maintaining security of access to their own
data.

The ‘exchange routing’ facility is described in detail in Chapter 4 in this section of the TRS/CPS
User Guide.

Use of TRS/CPS by Clearing and Non-Clearing Members

All members have unrestricted access to any of their own trades and positions, from a
TRS/CPS terminal.

General Clearing Members (GCM’s) can access details of their Non-Clearing Members’ (NCM’s)
trades. However, to protect confidentiality, the following details of an NCM’s trades are
not available to their GCM:

• Account reference.

• Order card reference.

• Allocation trader and member names.

• Counterparty trader and member names.

Page 111

 

If required, by prior agreement with their NCM’s, GCM’s may have unrestricted access to details of
their NCM’s trades. For more information about this, contact the LIFFE Helpdesk.

NCM’s cannot, under any circumstances, use TRS/CPS to access details of their GCM’s trades.

Daily Processing Timetable

All TRS/CPS functions are available throughout the trading day. If the current trading day is the
last trading day or expiry day for any contract, or is within a delivery period, the relevant CPS
delivery and/or exercise functions are available for use up to the appropriate deadline for the
contract concerned.

So that accurate open interest data can be published, open interest is calculated, and an ‘Open
Interest Report’ generated, at approximately 10.00 each day, for financial futures and options.
The report is based on the positions recorded by CPS at the end of the previous day and adjusted by
any position transfers or settlement instructions entered on the current day up to 10.00am. This
gives you time to adjust CPS positions, to bring them into line with aggregate client positions
generated overnight by your back office systems, etc.

For equity and index options, open interest is based on positions recorded by CPS at the end of the
previous day.

After trading has ceased for the day and all trades have been processed by TRS, settlement
prices are fed into the system to enable end-of-day processing to be carried out. Prior to
this, the effect of any option exercises, manual and automatic settlements (closeouts) and
assignments, delivery information and final cash settlements are incorporated into
positions.

Intra-day processing runs are performed when necessary, dependent on contract specifications, with
a view to providing members with information as soon as possible after any relevant contract event.
Accounts that are maintained on a ‘net’ basis (ie. house, market maker and local accounts) are
automatically netted, leaving a net position to carry forward. The results of all CPS processing
are ‘advisory’ only, and depend on the LCH taking action under its General Regulations.

CPS end-of-day reports are available immediately after end-of-day processing is completed. Most
other reports are available throughout the trading day. You will be advised of any change to the
normal TRS/CPS processing timetable by broadcast messages on your TRS/CPS terminal.

You are strongly advised to print out your CPS end-of-day reports daily for audit purposes. In
particular, the SFA and the LCH advise that a hard copy of each day’s LCH Clearing Member Report
(CMR) is retained, in accordance with the SFA’s record-keeping rule 5-54.

Page 112

 

The table below describes a typical day’s clearing processing, with approximate timings.
Exercise/assignment and delivery runs depend on contract terms. In some cases,
exercise/delivery processing occurs during the trading day.

	 	 	 	 	 	 	 
	 
	START	 	END	 	EVENT	 	CONTRACTS
	09:30

	 	 	 	Delivery deadline
	 	Cocoa
	 
	 	 	 	 	 	 
	09:40

	 	10:00
	 	Manual settlements and position
transfers – based on previous day’s
positions
	 	All
	 
	 	 	 	 	 	 
	10:00

	 	10:45
	 	Open interest data produced
	 	All
	 
	 	 	 	 	 	 
	10:30

	 	 	 	Delivery deadline
	 	Wheat, Barley
	 
	 	 	 	 	 	 
	11:00

	 	 	 	Delivery deadline
	 	Long Gilt, 5 year
Gilt, Potatoes, White
Sugar
	 
	 	 	 	 	 	 
	11:00

	 	11:20
	 	Delivery notifications received
	 	Long Gilt
	 
	 	 	 	 	 	 
	11:00

	 	11:30
	 	Delivery notifications received
	 	5 year Gilt
	 
	 	 	 	 	 	 
	11:10

	 	11:50
	 	Delivery notifications processed,
allocated and eported to members
	 	Long Gilt, 5 year Gilt
	 
	 	 	 	 	 	 
	11:30

	 	 	 	Expiry day exercise deadline
	 	All serial options &
Euro BTP, Euro Bund,
Long Gilt, 5 year
Gilt quarterly
options
	 
	 	 	 	 	 	 
	11:30

	 	12:00
	 	Expiry, intra-day processing and
reports for members
	 	All serial options &
Euro BTP, Euro Bund,
Long Gilt, 5 year
Gilt quarterly
options
	 
	 	 	 	 	 	 
	12:00

	 	 	 	Delivery deadline
	 	Euro Bund, Coffee
	 
	 	 	 	 	 	 
	12:00

	 	12:20
	 	Notice positions reported to members
	 	Euro Bund
	 
	 	 	 	 	 	 
	12:30

	 	 	 	Expiry day exercise deadline
	 	All Short Sterling, Euribor, Euroswiss, Euro LIBOR quarterly & mid-curve options
	 
	 	 	 	 	 	 
	12:30

	 	13:00
	 	Expiry, intra-day processing and
reports for members
	 	All Short Sterling, Euribor, Euroswiss, Euro LIBOR quarterly & mid-curve options
	 
	 	 	 	 	 	 
	12:55

	 	 	 	Expiry day exercise deadline
	 	Cocoa

Page 113

 

	 	 	 	 	 	 	 
	 
	START	 	END	 	EVENT	 	CONTRACTS
	12:55

	 	13:15
	 	Expiry, intra-day processing and
reports for members
	 	Cocoa
	 
	 	 	 	 	 	 
	13:30

	 	 	 	Delivery deadline
	 	Euro BTP
	 
	 	 	 	 	 	 
	13:30

	 	 	 	Expiry day exercise deadline
	 	Coffee
	 
	 	 	 	 	 	 
	13:30

	 	13:45
	 	Expiry, intra-day processing and
reports for members
	 	Coffee
	 
	 	 	 	 	 	 
	16:30

	 	18:00
	 	End-of-day processing
	 	Euroyen (Tibor)
	 
	 	 	 	 	 	 
	16:31

	 	 	 	Daily exercise deadline
	 	SEI FTSE index options
	 
	 	 	 	 	 	 
	17:00

	 	 	 	Daily exercise deadline
	 	All financial options
	 
	 	 	 	 	 	 
	17:00

	 	 	 	Expiry day exercise deadline
	 	Potatoes
	 
	 	 	 	 	 	 
	17:00

	 	17:15
	 	Expiry, intra-day processing and
reports for members
	 	Potatoes
	 
	 	 	 	 	 	 
	17:15

	 	 	 	Expiry day exercise deadline
	 	Wheat, Barley
	 
	 	 	 	 	 	 
	17:15

	 	17:30
	 	Expiry, intra-day processing and
reports for members
	 	Wheat, Barley
	 
	 	 	 	 	 	 
	17:20

	 	 	 	Daily exercise deadline
	 	All equity options
	 
	 	 	 	 	 	 
	17:30

	 	18:30
	 	Settlement prices, risk arrays,
etc. generated
	 	All
	 
	 	 	 	 	 	 
	17:40

	 	 	 	Expiry day exercise deadline
	 	Biffex
	 
	 	 	 	 	 	 
	17:40

	 	17:55
	 	Expiry, intra-day processing
reports and for members
	 	Biffex
	 
	 	 	 	 	 	 
	18:00

	 	 	 	Expiry day exercise deadline
	 	All equity and index
options
	 
	 	 	 	 	 	 
	18:00

	 	21:00
	 	End-of-day processing (auto/manual
settlements,
exercise/assignment/delivery, final
cash settlements, margining and
reports)
	 	All except Euroyen (Tibor) & JGB
	 
	 	 	 	 	 	 
	19:30

	 	 	 	Expiry day exercise deadline
	 	White Sugar
	 
	 	 	 	 	 	 
	19:30

	 	19:45
	 	Expiry, intra-day processing and
reports for members
	 	White Sugar
	 
	 	 	 	 	 	 
	02:00

	 	02:10
	 	End-of-day processing
	 	JGB

     

Page 114

 

Note that deadlines are different for i) the exercise of an option on its expiry day and ii)
the early exercise of an option before its expiry day. The deadline for early exercise, before the
expiry day, is known as the ‘daily’ deadline.

On a contract expiry day, the ‘expiry day’ exercise deadline applies only to the contract month
that is expiring. The ‘daily’ deadline applies for the early exercise of any options in
non-expiring series.

Furthermore, the delivery deadlines in the table are the normal delivery deadlines for the
indicated futures contracts. For certain contracts with notice periods that last several days, the
delivery deadlines are different on the last day of the notice period. See the Reference Section,
at the back of this guide, for full details.

TRS/CPS Interfaces

The following diagram illustrates the flow of data Into and out of TRS/CPS (the ‘Trade
Registration System’ box includes both TRS and Kerb TRS):

The different elements of this diagram are described below.

Inputs

Manual Inputs

	 	(1)  	Trades– and instructions input manually using TRS/CPS menu options.

Automatic Inputs

	 	(2)  	Valid series, contract details, membership details, etc. passed electronically
from the LIFFE Membership Database and processed overnight.

Page 115

 

	 	(3)  	Matched trade data passed electronically from LIFFE ConnectTM and
APT throughout the trading period.

Output

Back Office Systems

	 	(4)  	All data entered on TRS/CPS can be automatically transmitted to your back
office client accounting and management systems, saving the need for re-entry of
information. Back office systems may be supplied with information in one of two ways:

	 	 	 	 	 	 	 
	 	 	TSCS	 	Trade Status Change Stream. This provides a continuous stream of
details regarding trades entered and modified in TRS, as well as
position changes, settlement prices and SPAN information when they
become available. End-of-day positions, margin data and all
reports are also transmitted at the end of each day.
	 
	 	 	 	 	 	 
	 	 	PC Gateway	 	A PC-based TRS/CPS interface which allows members:
	 	 	 	 	 
	 

	 	 	 	•
	 	To set the timing of data downloads.
	 
	 	 	 	 	 	 
	

	 	 	 	•
	 	To specify the type and format of files automatically
generated using the downloaded data.
	 
	 	 	 	 	 	 
	

	 	 	 	•
	 	To request pre-formatted reports and trading calendars,
contract details, etc.

Contact the LIFFE Helpdesk for further information regarding back office interfaces. Contact
details are provided in Chapter 1 of this section, About This Guide.

London Clearing House (LCH)

	 	(5)  	CPS data is electronically transmitted to the LCH to enable it to perform the
various delivery processes, cover calling and treasury functions which are required in
its role as counterparty to clearing members in respect of every registered contract.
The automatic data feed between CPS and the LCH’s systems includes, where appropriate,
details of instructions entered on CPS by members. In addition, at the end of each day,
positions are consolidated and a wide variety of data is transmitted to the LCH, where
margins are calculated at clearing member level.

Reports

	 	(6)  	A wide variety of TRS, CPS and LCH reports are available for on-screen display
and for printing throughout the day. Report data is updated at the

     

Page 116

 

end of each day’s trading and, where possible, throughout the day. For financial
futures and options, four business day’s reports are available at all times for
members to access. Two business day’s reports are available for equity and index,
and commodity, contracts.

Page 117

 

Chapter 2

General Operating

This chapter describes the general information required in order to use any TRS/CPS
functions, It explains the way in which you can connect to the system, move around within
it, enter commands, and control and understand the trade information that is displayed. The
information in this chapter is divided into three parts:

	 	 	 	 	 
	

	 	Getting Started
	 	Describes how to connect to TRS/CPS,
use the main menu, enter basic
commands and instructions, and
understand and control screen
displays. Also describes the use of
special TRS/CPS function keys.
	 
	 	 	 	 
	

	 	TRS/CPS Status Codes
	 	Explains the different status codes
that are assigned to trades, claims
and notifications, in order to
indicate their progress through the
TRS/CPS processing cycle.
	 
	 	 	 	 
	

	 	Selecting TRS/CPS Data
	 	Explains how you can use trade and
notification status codes, and other
criteria, to assist you in selecting
the data you require, in order to
ensure that all of your business is
registered and processed
successfully

Getting Started

This part of the chapter is intended to give you a basic knowledge of how to use TRS/CPS. It
explains:

	 	•  	How to log on to TRS/CPS.
	 
	 	•  	How to use the main menu, and the password and settings functions that are available
from it.
	 
	 	•  	The use of broadcast messages within TRS/CPS to relay information to members.
	 
	 	•  	The keys that are designated for special use within TRS/CPS.

Logging On

Note that the TRS/CPS main menu contains all TRS, Kerb TRS and CPS functions. The same
procedure is used to log on, and the same main menu is displayed, irrespective of the
functions that you intend to use.

To log on to TRS/CPS at any TRS/CPS back office or DMI terminal:

Page 118

 

	 	1.  	Press any key to display the logon screen:

	 	 	 	 	 	 	 
	 	 	 
	 	(LOG) LOGON

	 	TRADE REGISTRATION LIVE SYSTEM
	 	VERSION 8.1-03	 
	 	 	 
	 	
THE LONDON FINANCIAL FUTURES & OPTIONS EXCHANGE	 
	 	 
	 	 	 	 	 
	 	

	 	USER NAME
                         	 	 	 
	 	 
	 	 	 	 	 
	 	

	 	PASSWORD:
                         	 	 	 
	 	 
	 	 	 	 	 
	 	Terminal Id 8000 TERM_M_0195	 
	 	 	 

	 	(2)  	Enter your username and hit [Return].
	 
	 	(3)  	Enter your password and hit [Return].

Your user name and password are security devices, and you should keep them secret. The password
will show as a series of asterisks as you type it in, to prevent it being seen by unauthorised
personnel. If your password has expired, a message will inform you at this stage. To renew it, you
must follow procedures described on page 124 under ‘Changing Passwords’.

Page 119

 

The TRS/CPS Main Menu will then be displayed, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	(MEN) LIFFE TRS Main Menu	 	 	 	 	 	3-AUG-98	 	19:29	 	Operator :	 	LIFFE	 
	 	 	 
	 	Enter Function:	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1.	 	(TCI) Trade/Claim Input	 	 	11.	 	 	(POS) Position Summary	 
	 	2.	 	(EDT) Edit by Slip No.	 	 	12.	 	 	(DLV) Delivery Notifications	 
	 	3.	 	(REP) Display/Print Report	 	 	13.	 	 	(STL) Settlement Instructions	 
	 	4.	 	(CAL) Confirm Allocations	 	 	14.	 	 	(TOP) Position Transfers	 
	 	5.	 	(ENQ) Trade Enquiries	 	 	15.	 	 	(AEX) Auto Exercise Instructions	 
	 	6.	 	(BED) Bulk Edit	 	 	16.	 	 	(BPD) T-Bond Bought Positions	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	17.	 	 	(EXR) Exercise Notifications	 
	 	7.	 	(KHP) Kerb Help Screen	 	 	18.	 	 	(PPD) Positions Pending Delivery	 
	 	8.	 	(KED) Kerb Edit by Slip No.	 	 	19.	 	 	(DPN) Delivery Pending Notes	 
	 	9.	 	(KEN) Kerb Trade Enquiries	 	 	20.	 	 	MGN) Margin Notes	 
	 	10.	 	(KBE) Kerb Bulk Edit/CAL	 	 	21.	 	 	(PCF) Position Conversion Facility	 
	 	 	 
	 	

	 	 	 	 
	 	 	 	 	 	Save Screen Settings	 
	 	

	 	 	 	 
	 	 	 	 	 	Password Change	 
	 	 	 

The TRS/CPS Main Menu

The main menu, illustrated above, contains a list of numbered options, each of which
provides access to a TRS/CPS function, and the ‘Save Screen Settings’ and ‘Password Change’
facilities.

Selecting Menu Options

In the above illustration, the cursor is positioned over menu option 1, Trade/Claim Input. TRS menu
options are numbered 1 to 6, Kerb TRS functions are numbered 7 to 10, and CPS menu options are
numbered 11 to 20. (Menu option 21 is available for occasional use, when it is necessary to
convert positions from one exchange contract to another, for regulatory reasons.)

Use the up and down arrow keys to move the cursor to the option you require, or type the number of
the option, and press [Return].

For all options except option 1, when you press [Return], a highlighted strip called a window will
be displayed below the list of functions. When this window appears, you must enter an instruction
into it, to indicate the trades/positions, or the report, you wish to display. The relevant
function screen will then be displayed, containing the specified data. When the window appears, if
you want to repeat the previous selection that you entered, or if you want to modify it slightly,
you can redisplay it in the window by hitting the up-arrow key. You can then leave the selection
unchanged or modify it, as you wish, before hitting [Return] to enter it again.

Page 120

 

For general details of the instructions that you should enter in the window, see under ‘Selecting
TRS/CPS Data’ on page 133. For specific details relating to a particular TRS/CPS function, see the
description of the relevant function in the second chapter of the TRS Section, Kerb TRS Section or
CPS Section, as appropriate.

Returning to the Main Menu

[F11] takes you back to the previous screen displayed In most cases, this will be the main menu If
the main menu does not appear immediately, hit [F11] again until it does.

Screen Settings

The following TRS and Kerb TRS functions offer you the choice of 80-character per line or
132-character per line screen display:

	 	•  	Trade/Claim Input
	 
	 	•  	Edit by Slip No.
	 
	 	•  	Confirm Allocations
	 
	 	•  	Bulk Edit
	 
	 	•  	Kerb Edit by Slip No.
	 
	 	•  	Kerb Bulk Edit/CAL

For example, the Edit by Slip No. function has the following format when 80-character
display is used:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	EDT	 	:	TRS	Edit / Delete	 	 	 	 	 	 	 	 	 	3–Aug–98	 	 	 	19:36	 	 	 	Operator	 	:     LIFFE	 	 
	 
	N

	 	O
	Y	TB
	B
	T
	Org
	Cpy
	C
	M
	Exer
	Price
	Vol
	A
	All
	X
	Ord Ref
	Account 
Ref  
	St
	 

	 	 
	 	 	 	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1

	 	C
	 	 	C	 	 	 	 	 	 	B
	 	F
	 	AAA
	 	BBB
	 	R
	 	U
	 	 	 	 	11105	 	 	 	5	 	 	H
	 	 	 	 	 	 	12345	 	 	HOUSE
	 	UC
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	N

	 	O
	 	Y	TB
	B
	T
	Org
	Cpy
	C
	M
	Exer
	Price
	Vol
	A
	All
	X
	Ord Ref
	Account 
Ref  
	St
	 

	 	 
	 	 	 	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	

	 	Slip No. 8008000152	 	 	 		 	 	 	 	 	 	 	 	 	 	 	 	Modify/Delete/Append (M,D,A.)	 	 	 	 	 	 	 	 	 	 	 	 	Unassigned Vol 0	 	 

Page 121

 

Alternatively, the same screen has the following format when 132-character display is
used:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EDT : TRS Edit / Delete	 	 	Trading Date:	 	 	3–Aug–98	 	 	19:37	 	 	Operator : LIFFE	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	N

	 	 	O
	 	 	Y
	 	 	TB
	 	 	B
	 	 	T
	 	 	Org
	 	 	Cpy
	 	 	C
	 	 	M
	 	 	Exer
	 	 	Price
	 	 	Vol
	 	 	A
	 	 	All
	 	 	Sub
	 	 	TOB
	 	 	 	O/C	 	 	 	X
	 	 	Ord Ref
	 	 	Account Ref
	 	 	E
	 	 	Trd Date
	 	 	Order No
	 	 	St	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1

	 	 	C
	 	 	C
	 	 	 	 	 	B
	 	 	F
	 	 	AAA
	 	 	BBB
	 	 	R
	 	 	U
	 	 	 	 	 	 	11105	 	 	 	 	      5	 	 	 	H
	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	12345	 	 	 	HOUSE
	 	 	F
	 	 	03-AUG-98
	 	 	 	 	 	UC

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	N

	 	 	O
	 	 	Y
	 	 	TB
	 	 	B
	 	 	T
	 	 	Org
	 	 	Cpy
	 	 	C
	 	 	M
	 	 	Exer
	 	 	Price
	 	 	Vol
	 	 	A
	 	 	All
	 	 	Sub
	 	 	TOB
	 	 	 	O/C	 	 	 	X
	 	 	Ord Ref
	 	 	Account Ref
	 	 	E
	 	 	Trd Date
	 	 	Order No
	 	 	St	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Slip No. 8008000152

	 	 	Modify/Delete/Append (M, D, A.)
	 	 	Unassigned Vol 0

In general, if you use a 132-character screen, it will contain more fields per trade than the
equivalent 80-character screen. On 80-character screens, some of the field names, and the fields
themselves may be truncated or removed. However, on standard VT terminals, the characters on
132-character screens are extremely small, and some users may strain to read them, particularly if
using TRS/CPS over a long period of time.

For functions for which you have the choice, it is up to you which screen display you use.
Throughout this guide, the descriptions of TRS/CPS functions always refer to, and illustrate, the
132-character screens.

You may change between the two available displays at any time that the function is displayed by
hitting [Find].

When the main menu is displayed, you can also change the display that will be used by a function,
by moving the cursor to the required function, and hitting [Find].

The main menu shows the currently selected display format for each function After each function’s
number, you will see either a dot, to indicate that 80-character display dselected, or a dash to
indicate that 132-character display is selected. For example:

Page 122

 

	 	 	 	 	 	 	 	 	 	 	 
	(MEN) LIFFE TRS Main Menu	 	 	3—AUG—98	 	19:29 Operator : LIFFE	 
	 
	Enter Function :
	 
	 	 	 	 	 	 	 	 	 	 
	1.
	 	(TCI)	 	Trade/Claim  Input	 	11_	 	(POS)	 	Position Summary
	2.
	 	(EDT)	 	Edit by Slip No.	 	12.	 	(DLV)	 	Delivery Notification
	3.
	 	(REP)	 	Display/Print Report	 	13.	 	(STL)	 	Settlement Instructions
	4.
	 	(CAL)	 	Confirm Allocations	 	14_	 	(TOP)	 	Position Transfers
	5_
	 	(ENQ)	 	Trade Enquiries	 	15.	 	(AEX)	 	Auto Exercise Instructions
	6_
	 	(BED)	 	Bulk Edit	 	16.	 	(BPD)	 	T-Bond Bought Positions
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	17.	 	(EXR)	 	Exercise Notification
	7.
	 	(KHP)	 	Kerb Help Screen	 	18_	 	(PPD)	 	Positions Pending Delivery
	8.
	 	(KED)	 	Kerb Edit by Slip No.	 	19_	 	(DPN)	 	Delivery Pending Notes
	9_
	 	(KEN)	 	Kerb Trade Enquiries	 	20_	 	(MGN)	 	Margin Notes
	10_
	 	(KBE)	 	Kerb Bulk Edit/CAL	 	21.	 	(PCF)	 	Position Conversion Facility
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	          Save Screen Settings
	 
	 	 	 	 	 	 	 	 	 	          Password Change

In the above example, 132-character display is selected for functions 5, 6, 9, 10, 11, 14, 18,
19, and 20.

When you log in, all other functions are set to 80-character display by default, You can, if you
wish, change the default settings that apply to menu options 1, 2, 4, 6, 8 and 10. To do this:

	 	1.  	Change the display for each individual function, using the [Find] key, to suit
your requirements.
	 
	 	2.  	When the main menu is displayed, type S, or move the cursor to the Save Screen
Settings facility, and hit [Return].
	 
	 	   	The message ‘Saved Screen Settings’ will appear at the bottom of the screen, for a
few seconds, and the cursor then will return to the menu.

Changing Passwords

To ensure the security of your trade and position data, you are recommended to
change your password on a regular basis.

You can do this, at any time that the main menu is displayed, as follows:

	 	1.  	Type P, or move the cursor to the Password Change facility.
	 
	 	2.  	Hit [Return].

The following box will appear:

Page 123

 

	 	 	 
	Old Password

	 	

	 
	 	 
	New Password

	 	

	 
	 	 
	Verification

	 	

	 	3.  	Enter your existing password in the Old Password field.

It will be displayed as asterisks. You will not be allowed to proceed unless you
enter the password correctly.

	 	4.  	Enter the new password of your choice in the New Password
field, and then enter the same new password in the Verification field.

These will both be displayed as asterisks. You must enter the same new password in
both fields. It should have between 3 and 12 characters, and must be different from
your previous 3 passwords.

If this is the case, your password will be changed, and the box will be removed from
the screen.

Logging Off

To log off, press [F20] when the main menu is displayed.

If you leave a session inactive for a period of time, you will be automatically logged off. Log on
again if you wish to continue.

Restricted Access Users

It is possible to set up individual back office users with restricted access to the
following exercise and delivery facilities:

	 	12.  	(DLV) Delivery Notifications.
	 
	 	13.  	(AEX) Auto Exercise Instructions.
	 
	 	14.  	(EXR) Exercise Notifications.

If you require any individual users to be set up with this restricted access, please contact the
LIFFE Helpdesk.

Page 124

 

Function Keys

TRS/CPS function keys are listed below with their associated commands:

	 	 	 
	F1

	 	Hold screen
	F2

	 	Print the current screen
	F6

	 	Repeat key
	F8/F9

	 	Scroll to first/last page of search (maximum movement of 20
pages in ENQ, or 24 pages in BED)
	F10

	 	Copy down
	F11

	 	Exit from current screen
	F12

	 	Go back a field
	F13

	 	Clear current field
	F14

	 	Select next item in sequence
	F17

	 	Cancel current task
	F18

	 	Delete trade/claim/instruction
	F20

	 	Log off
	DO

	 	Submit an action
	HELP

	 	Display one-line help message for current field
	FIND

	 	Toggle between 132-character and 80-character screen
	SELECT

	 	Display Exchange Selection Box for exchange routing
	REMOVE/DEL

ETE

	 	Remove broadcast message from screen
	INSERT HERE

	 	Recall error message
	NEXT

	 	Scroll forward one page
	PREV

	 	Scroll back one page
	PF3

	 	Change view (Position Summary only)
	PF4

	 	Confidentiality key
	up arrow

	 	Repeat previous search/request for a particular menu item
	down arrow

	 	Remove previous search/request for a particular menu

Page 125

 

Broadcast Messages

From time to time, it may be necessary for LIFFE TRS staff to contact members. To do this, they use
a broadcast facility which can transmit messages either to an individual member’s terminal or to
all members.

There are two different types of broadcast message — high priority and low priority.

High priority messages appear in a large box in the middle of the screen. When they appear, you
must hit [Remove] to remove the message from the screen before you can continue.

Low priority messages appear in the bottom-left hand corner of the screen. They will be removed
automatically when another low priority message is displayed, or when you select any function from
the main menu.

The $BCAST report lists all high and low priority broadcast messages that have been transmitted on
the current trading day. You can print this report, or display it on the screen, in the normal way
For full details of how to print or display reports see chapter 5, Reporting, in this section.

Change of Day Broadcast

Because all trades and reports are retained for at least two days within the system, a broadcast
message will be sent to all TRS/CPS users when the system changes trading days in the early hours
of the morning. The broadcast will inform you of the new trading date and remind you to use G-YES
when requesting reports on the previous day’s business. For full details see chapter 5, Reporting,
in this section.

TRS/CPS Status Codes

TRS/CPS assigns status codes to all trades/claims and notifications, at the time they are entered.
The system then updates these status codes to reflect the progress of the trade/claim or
notification through the TRS/CPS processing cycle.

Status codes can be used to determine whether processing has been successfully completed as
expected, or whether trades/claims remain unresolved or notifications remain unprocessed. Status
codes can also give you other useful information about the data to which they relate.

In addition, you can use status codes as the basis for making trade/position and notification
selections, and thereby to help you ensure that your business is successfully matched, resolved and
passed for clearing processing at the end of each trading day.

Page 126

 

Trade Status Codes

Trade status codes are used throughout the system to assist you in monitoring trades
and claims, and in ensuring that they are matched, assigned, registered and passed
for clearing correctly.

All trades and claims are given a status code when they are entered. Initially, the
following codes are assigned:

	 	 	 	 	 	 	 
	 
	 	 	STATUS	 	 	 	 
	DETAILS INPUT	 	GIVEN	 	CODE	 	MEANING
	 
	Bought/Sold Trade

	 	UT
	 	 	 	Unmatched Trade
	 
	 	 	 	 	 	 
	Allocation (give up

by you)

	 	UA
	 	 	 	Unmatched Allocation
	 
	 	 	 	 	 	 
	Claim (made by you)

	 	UC
	 	 	 	     Unmatched Claim
	 

Status codes are changed automatically by the system, to indicate the progress of trades/claims
through the TRS/CPS trade registration cycle.

It is important that you understand the meanings of the different TRS/CPS status codes, and the
ways in which they are used. A complete list of TRS/CPS status codes, and their meanings, appears
overleaf.

Ghosts

For each trade or claim whose details are entered into TRS/CPS, the system expects one set of
details to be entered by each of the two parties involved, ie. the buyer and seller of a trade, or
the allocator and allocatee of a claim.

As soon as the first set of details of a trade/claim is entered, TRS creates a corresponding set of
details, called a ghost. This represents the set of details that the counterparty should enter to
establish a match. Understanding the concept of ‘ghost’ trades is central to understanding how to
use TRS/CPS.

Ghosts, like the trades/claims to which they correspond, are given status codes when they are
created. You can recognise ghosts, and determine what type of trade/claim they correspond to, by
their status codes, as follows:

	 	 	 	 	 	 	 
	 
	DETAILS	 	STATUS	 	 	 	 
	INPUT	 	CODE  	 	GHOST STATUS CODE  	 	MEANING
	 
	Trade

	 	UT
	 	Nl
	 	Not Input
	Allocation

	 	UA
	 	NC
	 	Not Claimed
	Claim

	 	UC
	 	NA
	 	Not Allocated
	 

Page 127

 

When you see a ghost status code, it indicates that you must take action in order to make a matched
trade/claim.

For example, if you have a ghost with status NC (Not Claimed), this indicates that you must claim,
and thereby confirm, an allocation. The counterparty has already entered details of the allocation
(which will have status UA).

Once both sets of matching details have been entered, the ghost will be replaced with a trade, and
its status code will be updated automatically, according to the type of trade/claim.

TRS Status Codes

Below is a complete list of trade status codes used by TRS with explanations of what they mean:

	 	 	 	 	 
	UT

	 	Unmatched

Trade
	 	A bought or sold trade, for which you
have entered details that have not yet
been matched with details from the
counterparty.
	 
	 	 	 	 
	

	 	 	 	For each UT, ghost details are created
with status NI (Not Input).
	 
	 	 	 	 
	NI

	 	Not Input
	 	A ghost that identifies a bought or sold
trade for which only the counterparty has
entered details. You have yet to enter
your side of the trade.
	 
	 	 	 	 
	UR

	 	Unregistered

Trade
	 	A matched trade or allocation claim that
has been matched with details from the
counterparty, but which you have not yet
assigned/allocated.
	 
	 	 	 	 
	RT

	 	Registered Trade
	 	A trade or allocation claim that has been
matched and assigned and is therefore
ready to be submitted for clearing
processing.
	 
	 	 	 	 
	UA

	 	Unmatched Allocation
	 	A matched trade that has been allocated
to another party, but which they have not
yet claimed.
	 
	 	 	 	 
	

	 	 	 	For each UA, ghost details are created
with status NC (Not Claimed).

Page 128

 

	 	 	 	 	 
	NC

	 	Not Claimed
	 	A trade allocated to you, but which you
have not yet claimed. NC can identify a
sub-trade allocated to you, but this will
only appear when the parent trade has
matched.
	 
	 	 	 	 
	CA

	 	Confirmed Allocation
	 	A trade or allocation claim which you
have allocated to another party, and
which has been claimed.
	 
	 	 	 	 
	UC

	 	Unmatched

Claim
	 	An allocation claim which you have made,
but which has not yet been matched with a
give-up from the counterparty.
	 
	 	 	 	 
	

	 	 	 	For each UC, ghost details are created
with status NA.
	 
	 	 	 	 
	NA

	 	Not Allocated
	 	A ghost that identifies a trade that has
been claimed from you, but for which you
have not entered a matching allocation.
	 
	 	 	 	 
	MS

	 	Matched Split
	 	A parent trade that you have split into a
number of sub-trades, and which has
matched with its counter trade. No
further processing is performed on this
trade.
	 
	 	 	 	 
	

	 	 	 	Once a trade has become split, you can
only unsplit it when the number of
sub-trades is reduced to one. See the TRS
Functions chapter of the TRS Section for
full details of how TRS/CPS handles split
trades.
	 
	 	 	 	 
	UP

	 	Unmatched

Parent
	 	A sub-trade for which the parent trade
has not been matched (see MS)
	 
	 	 	 	 
	DE

	 	Deleted Trade/Claim
	 	A trade or claim that has been deleted.

Kerb TRS Status Codes

For all LIFFE financial, equity and commodity contracts, any unassigned trades or failed
allocations that have been assigned to your Default account at the end of the day, and any claims
that remained unmatched at the end of the day, (ie. kerb trades) may be resolved and processed the
following trading day, by members, using the functions of Kerb TRS.

Page 129

 

For all LIFFE financial, equity and commodity contracts, at the end of the trading day, any trades
that have not been assigned or allocated, and any allocations that have failed, will be assigned to
your Default account.

Unassigned/unallocated trades will have the status code UR. Failed allocations will have the status
code UA.

This business, known as ‘kerb’ trades, may be resolved and processed the following trading day
using the functions of Kerb TRS.

As well as these kerb trades, any claims that remain unmatched at the end of the day will be
cancelled, and will reappear the following day, with status code UC in Kerb TRS, which you can use
to resolve them. If there are any allocations to you by other members, that you have not claimed by
the end of the trading day, they too will appear the following day as ghosts with status code NC in
Kerb TRS.

In addition to kerb trades, all resolved trades or claims associated with any of the defaulted
business will also be displayed within the Kerb TRS functions. These, displayed in Kerb TRS for
your information only, will have the special status code LT (Locked Trade). You will not be able to
amend or process them.

Notification Status Codes

TRS/CPS also assigns a status code to all notifications that are entered using the CPS notification
functions, such as Delivery Notification, Settlement Instructions, etc. Notifications have
different status codes from those that are assigned to trades and claims. However, like trade
status codes, they are maintained automatically by the system, and can be used to monitor the
progress of the notification through the CPS processing cycle.

Page 130

 

The status code that is assigned to a notification when it is entered/created, depends on the type
and circumstances of the notification, as follows:

	 	 	 	 	 
	 
	CODE	 	MEANING	 	ASSIGNED TO
	 
	RN

	 	Registered notification
	 	All manually entered settlement
and delivery notifications.
	 
	 	 	 	 
	

	 	 	 	All position transfer
notifications generated
automatically after you have
resolved defaulted business
using Kerb TRS.
	 
	 	 	 	 
	

	 	 	 	Manually entered notifications
of position transfers between
your own accounts, at the
previous night’s settlement
price (at zero price for equity
options).
	 
	 	 	 	 
	UN

	 	Unmatched notification
	 	Manually entered notifications
of position transfers between
two different members, for
which there is no existing
matching notification entered
by the counterparty at the time
they are entered.
	 
	 	 	 	 
	MU

	 	Matched unauthorised

notification
	 	Manually entered notifications
of position transfers between
two different members, that
match on entry with an existing
notification that has been
entered by the counterparty.
	 
	 	 	 	 
	OK

	 	Auto-exercise instruction
	 	All. manually entered
auto-exercise instructions.
	 

Position Transfers between Members

Position transfers between different exchange members are processed differently from transfers
between your own accounts, or any other type of notification.

Provided they relate to valid positions, transfers between your own accounts, and other
notifications, can be accepted for processing by CPS without any other authorisation, if the
positions are transferred at the previous night’s settlement price for the series or, for equity
options, at a zero price.

However, transfers of positions between two different members, because they involve two parties,
are processed in a similar way to trades and claims. This means that, when you enter a notification
of this type, CPS will automatically generate a ghost notification, to represent the matching
transfer that must be entered by the other member, before

Page 131

 

the transfer can be processed. The notification will be given status code UN, and the ghost will be
given status code NI.

In addition, to ensure that regulatory requirements are met, transfers of this type must be
authorised by LIFFE staff before they can be processed.

Other types of notification will be processed automatically in a CPS processing run, after they
have been entered Their status codes will be updated accordingly when they are processed (see the
table below)

CPS Status Codes

The following table lists all status codes that are valid for CPS notifications, and their
meanings:

	 	 	 	 	 
	RN

	 	Registered
	 	One of the following:
	

	 	notification	 	 
	 
	 	 	 	 
	

	 	 	 	A settlement, delivery or exercise notification you have
entered.
	 
	 	 	 	 
	

	 	 	 	A position transfer notification generated automatically
after you have resolved defaulted business using Kerb TRS.
	 
	 	 	 	 
	

	 	 	 	A notification of a position transfer, between your own
accounts, that you have entered at the previous night’s
settlement price (at zero price for equity options).
	 
	 	 	 	 
	UN

	 	Unmatched

notification
	 	A manually entered notification of a position transfer
between you and another member, for which the other member
has not yet entered matching details. You may amend or
delete notifications with this status code.
	 
	 	 	 	 
	OK

	 	Auto-exercise

instruction
	 	A recently amended auto-exercise instruction that has been
confirmed and accepted as valid, but which you may not
change.
	 
	 	 	 	 
	AV

	 	Auto-exercise

instruction
	 	An auto-exercise instruction that is available for amendment.
	 
	 	 	 	 
	IV

	 	Invalid instruction
	 	Invalid instruction. After this status is returned, a
message will be displayed explaining why the instruction was
not accepted. If this occurs, you must hit [Remove] to
continue.

Page 132

 

	 	 	 	 	 
	NI

	 	Notification not

input
	 	A ghost that identifies a notification of a position
transfer between you and another member, for which only the
other member has entered details. You have yet to enter your
side of the notification.
	 
	 	 	 	 
	MU

	 	Matched

unauthorised

notification
	 	A notification of a position transfer between you and
another member, that has been entered by both you and the
other member, and has been matched, but not yet authorised
by LIFFE staff.
	 
	 	 	 	 
	AN

	 	Authorised

notification
	 	A notification of a position transfer between you and
another member that has been matched and authorised by LIFFE
staff, ready for processing.
	 
	 	 	 	 
	RE

	 	Rejected

notification
	 	A position transfer notification that has been rejected by
LIFFE for some reason. Contact the LIFFE TRS Trade Enquiry
Desk for details.
	 
	 	 	 	 
	DN

	 	Deleted notification
	 	A manually entered delivery, settlement or exercise
notification, or a notification of a position transfer
between your own accounts, that you have deleted before it
was processed.
	 
	 	 	 	 
	PN

	 	Processed

notification
	 	A notification that has been processed by CPS.

Important Note

If you are in any doubt as to whether an instruction was successfully entered or processed, you
should check the appropriate notification function. If the instruction is displayed in that
function with a status code other than RE, the entry has been acknowledged by the system.

You should be especially vigilant if you have experienced any terminal or communication problems
that may cause you to doubt whether instructions were processed successfully. You should also
ensure that all notifications that you enter reach one of the RN, AN or PN status codes, to
indicate that they are ready for processing, or have been processed. Delivery and exercise
notifications, and automatic exercise instructions, should be carefully checked in advance of the
relevant delivery or exercise deadline, and any problems reported without delay to the Market
Supervision Department at LIFFE, or to the LCH.

Selecting TRS/CPS Data

LIFFE aims to ensure that members have the most up-to-date and reliable information available to
them, in the form of TRS/CPS reports and enquiries, throughout the day

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and, particularly, at the end of each trading day, in order to assist them in making their trading
and processing decisions

The use of trade and notification status codes throughout TRS/CPS can assist you in monitoring
trades, and in ensuring that they are matched, assigned, claimed, allocated, registered and passed
for clearing, as appropriate.

In order that you can do this, TRS/CPS allows you to select trades/claims and
positions/notifications in various functions, for display on the screen, according to their status,
and to process large numbers of trades of the same status simultaneously, using the Bulk Edit
function.

In fact, TRS/CPS provides comprehensive facilities for the selection of trades/claims and
positions/notifications, that allow you not only to select trades/claims or notifications of a
given status, but to select data that satisfies any of a number of available selection criteria,
according to your requirements.

You enter instructions for the selection of trades/positions in the window that appears when you
select an appropriate function from the menu.

For most TRS/CPS functions, the instruction that you enter should be made up of a ‘search code’,
followed optionally by ‘search parameters’. For the CPS Position Summary function, the instruction
should be made up only of ‘search parameters’. These are used as follows:

	 	 	 
	Search

codes

	 	These allow you to select either:
	 
	 	 
	

	 	i) Trades, claims, allocations or notifications with a
particular status code, or
	 
	 	 
	

	 	ii) Trades, claims, allocations or notifications with
one of a pre-defined group of status codes. For example,
one group will select all ghost trades — with status
codes Ni, NA and NC.
	 
	 	 
	Search parameters

	 	Trade or position data with a particular attribute (such
as exercise price, delivery month, counterparty) or a
combination of attributes.

For example, a valid TRS selection instruction may be RI T=F C=R

This will find all registered trades (search code RT) that are long gilt (search parameter C=R)
futures (search parameter T=F).

The equivalent CPS selection instruction, to find all registered notifications relating to long
gilt futures, would be RN T=F C=R (the type of notification retrieved would be determined by the
menu option that you have selected).

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Masks

In addition, using the Report Selection Criteria screen in either the Trade Enquiries function or
the Bulk Edit function, you can set up a ‘mask’, which defines your selection criteria and can be
saved for future use.

The mask can specify required values for any of the particular trade attributes that you can
specify using search parameters, as well as for the trade status.

Once you have defined and saved a mask, you can use it like a single search parameter, when you
enter a selection instruction. See under ‘Search Parameters’ below, for further details.

See the description of the Trade Enquiries function, in chapter 2 of the TRS Section, for full
details of how to use the Report Selection Criteria screen to set up masks.

Search Codes

Search codes are two-letter codes that indicate the status code(s), of the trades/claims or
notifications you want to display. All the trade status codes, except DE, are valid search codes
that can be used to select trades of a single status in TRS and Kerb TRS functions:

	 	 	 	 	 
	

	 	CA
	 	Confirmed allocations
	 
	 	 	 	 
	

	 	NA
	 	Not allocated
	 
	 	 	 	 
	

	 	NC
	 	Not claimed
	 
	 	 	 	 
	

	 	NI
	 	Not input
	 
	 	 	 	 
	

	 	MS
	 	Matched splits
	 
	 	 	 	 
	

	 	RI
	 	Registered trades
	 
	 	 	 	 
	

	 	UA
	 	Unmatched allocations
	 
	 	 	 	 
	

	 	UC
	 	Unmatched claims
	 
	 	 	 	 
	

	 	UP
	 	Unmatched parents
	 
	 	 	 	 
	

	 	UR
	 	Unregistered trades
	 
	 	 	 	 
	

	 	UT
	 	Unmatched trades

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	 	 	In addition, the following notification status codes are valid search codes that can
be used to select notifications of a single status in CPS notification functions:
	 
	 	 	 	 
	

	 	RN
	 	Registered notification
	 
	 	 	 	 
	

	 	UN
	 	Unmatched position transfer notification
	 
	 	 	 	 
	

	 	NI
	 	Position transfer notification not input (ghost)
	 
	 	 	 	 
	

	 	MU
	 	Matched unauthorised position transfer notification
	 
	 	 	 	 
	

	 	AN
	 	Authorised position transfer notification
	 
	 	 	 	 
	

	 	RE
	 	Rejected position transfer notification
	 
	 	 	 	 
	

	 	DN
	 	Deleted notification
	 
	 	 	 	 
	

	 	PN

	 	Processed notification

Global Search Codes

In addition to the above codes, there are a number of so-called ‘global’ search codes that will
retrieve more than one status. The effect of a global search code depends on the function
selected. Global search codes for TRS or Kerb TRS functions retrieve different status codes from
the global search codes for CPS functions, even though, in some cases the codes are the same.

For example, GH (Go Home), for TRS functions, retrieves all unresolved business (ie. status codes
NA, NC, NI, UA, UC, UP, UR and UT). GH for the CPS Position Transfers function retrieves unresolved
notifications with status codes UN, NI and MU. ‘Go Home’ is so named because, at the end of the
day, you should not go home if GH retrieves anything.

The available TRS global search codes for trades/claims are:

	 	 	 	 	 
	CODE	 	SELECTS	 	SELECTED STATUS CODES
	AP

	 	Allocation problems
	 	UC, NC
	 
	 	 	 	 
	AS

	 	All TRS status codes except deleted

trades
	 	CA, NA, NC, NI, MS. RT, UA,
UC, UP, UR, UT
	 
	 	 	 	 
	DA

	 	Unmatched trades and ghosts
	 	UT, NI
	 
	 	 	 	 
	DE

	 	All trades and claims (not ghosts)
	 	CA, MS, RT, UA, UC, UP, UR,
UT
	 
	 	 	 	 
	DG

	 	All ghosts
	 	NA, NC, NI
	 
	 	 	 	 
	DL

	 	Deleted trades
	 	DE
	 
	 	 	 	 
	DT

	 	Matched trades and allocations
	 	CA, MS, RT, UA, UR

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	CODE	 	SELECTS	 	SELECTED STATUS CODES
	GH

	 	Go Home
	 	NA, NC, NI, UA, UC, UP,
UR,, UT
	 
	 	 	 	 
	GP

	 	Go Home, positive only
	 	UT, UA, UR, UC
	 
	 	 	 	 
	GR

	 	Go Home, excluding UA’s
	 	NA, NC, NI, UC, UP, UR, UT

The available CPS global search codes for notifications are:

	 	 	 	 	 
	CODE	 	SELECTS	 	SELECTED STATUS CODES
	AS

	 	All CPS active notifications
	 	UN, NI, MU, AN, RN
	 
	 	 	 	 
	DA

	 	Unmatched transfers and ghosts
	 	UN, NI
	 
	 	 	 	 
	DL

	 	Deleted and rejected notifications
	 	DN, RE
	 
	 	 	 	 
	GH

	 	Go Home
	 	UN, NI, MU
	 

Search Parameters

Using one or more search parameters, you can retrieve trade or position data with a particular
attribute (such as exercise price, delivery month, counterparty) or a combination of attributes.
You can enter any number of search parameters in your selection instruction. Search parameters take
the form of a single letter code, followed by an equals sign (or a ‘greater than’ sign — see the
table overleaf), and a value. For example, C=R would retrieve all long gilt trades/positions (C is
the code for contract and R is the value for Long Gilts). When you enter TRS/CPS selection
instructions for all functions other than the Position Summary function (menu option 11), you can
only enter search parameters in an instruction that begins with a search code.

In the Position Summary function, which shows only positions comprising registered trades, and does
not show notifications, you should enter search parameters only, without a search code at the
beginning.

So if, in a TRS or Kerb TRS function, you wish to retrieve all long gilt trades, irrespective of
their status, you should enter the instruction AS C=R and not simply C=R

Similarly, if you wish to retrieve all delivery notifications that have been entered for long
gilts, you should enter AS C=R after selecting the Delivery Notifications function.

     Below is a complete list of valid TRS/CPS search parameters:

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	CODE	 	DESCRIPTION	 	VALID ENTRIES
	A=

	 	Allocatee
	 	Three letter mnemonic
	 
	 	 	 	 
	AU=

	 	Trader to trader cross
	 	L (locked) or U (unauthorised)
	 
	 	 	 	 
	B=

	 	Buy/Sell
	 	B (buy) or S (sell)
	 
	 	 	 	 
	C=

	 	Contract
	 	Contract code
	 
	 	 	 	 
	D=

	 	Duration (elapsed time)
	 	Time in minutes (TRS only)
	 
	 	 	 	 
	Dl=

	 	Direction
	 	TO or FROM (CPS position transfers only)
	 
	 	 	 	 
	E=

	 	Exercise price equal to	 	 
	E>

	 	Exercise price greater than
	 	Numeric price. Must be used with trade
	E<

	 	Exercise price less than than
	 	type code, eg. T=P P=250
	 
	 	 	 	 
	EN=

	 	Environment
	 	F (floor), B (Basis Trade), N (Connect

Financials), Q (Connect Equities), A (APT)
	 
	 	 	 	 
	F=

	 	Filename
	 	Name of an existing mask file
	 
	 	 	 	 
	G=

	 	Date
	 	Date, eg. 16-MAR-99, or YES for Yesterday
	 
	 	 	 	 
	H=

	 	Account Code
	 	Exchange account code (H/S/N/L/M/D)
	 
	 	 	 	 
	J=

	 	Expiry Date
	 	Month and year, eg. J=SEP99
	 
	 	 	 	 
	L=

	 	Maximum number of records
	 	Numeric 0 to 99 (L=0 indicates all records)
	 
	 	 	 	 
	M=

	 	Delivery month (not CPS

functions)
	 	Standard single letter month code, eg. M=Z
(white December), etc.
	 
	 	 	 	 
	O=

	 	Order card reference
	 	Valid order card reference number, in
quotes, eg. O=“1234”
	 
	 	 	 	 
	OC=

	 	Opening/Closing trade
	 	O (open) or C (close), Euroyen (Tibor)
contracts and equity options only
	 
	 	 	 	 
	OI=

	 	Order Indicator
	 	LIFFE CONNECTTM order ID
	 
	 	 	 	 
	P=

	 	Trade price equal to
	 	Numeric price. Must be used with commodity
	P>

	 	Trade price greater than
	 	and contract type, eg.
	P<

	 	Trade price less than
	 	C=R T=F P10724
	 
	 	 	 	 
	R=

	 	Account reference
	 	Any text, in quotes, eg. R=“123546”
	 
	 	 	 	 
	SA=

	 	TIFFE sub-account code
	 	Four digit code — Euroyen (Tibor) only
	 
	 	 	 	 
	S=

	 	Trade/Notification slip number
	 	Valid trade or notification slip number

Page 138

 

	 	 	 	 	 
	 
	CODE	 	DESCRIPTION	 	VALID ENTRIES
	T=

	 	Contract type
	 	Contract type : F (futures), C (call), P
(put) or O (any options)
	 
	 	 	 	 
	TB=

	 	Time bracket
	 	Valid 2-character time bracket code
	 
	 	 	 	 
	TC=

	 	Trade/Claim
	 	T (trade) or C (claim)
	 
	 	 	 	 
	TO=

	 	TIFFE originated business
	 	Euroyen (Tibor) only. T (TIFFE business)
or space (non-TIFFE business)
	 
	 	 	 	 
	V=or V>

	 	Volume equal to/greater than

(CPS functions only)
	 	Number of lots
	 
	 	 	 	 
	W=

	 	Trade type
	 	Trade type code: C (claim), T (trade) or
any valid strategy code — see Reference
Section
	 
	 	 	 	 
	X=

	 	Originator member
	 	Three letter mnemonic
	 
	 	 	 	 
	XC=

	 	Clearing member business only
(ie. exclude NCM’s)
	 	Clearing member’s three-letter mnemonic
only
	 
	 	 	 	 
	XT=

	 	Trader
	 	Three letter mnemonic. Must be used with
the XC search parameter, eg. XC=AAA XT=ABC
	 
	 	 	 	 
	Y=

	 	Counterparty (TRS/Kerb TRS)

Destination member (position

transfers)
	 	Three letter mnemonic
	 
	 	 	 	 
	Z=

	 	Either originator or

counterparty (TRS/Kerb TRS)
	 	Three letter mnemonic
	 
	 	 	 	 
	

	 	Either originator or
destination member (position
transfers)	 	 
	 

The search parameters F, D, L, S, X, Y and Z require some additional explanation:

F Enables you to specify the name of a file containing a pre-defined mask (See the
description of the Trade Enquiries function, in chapter 2 of the TRS Section, for full
details of how to use the Report Selection Criteria screen to set up masks.). This causes
the selection criteria defined in the mask to be used. You should use this search parameter
without a search code.

D Extracts trades entered into TRS before or after a specific time given. For example, D=30
gives trades entered over 30 minutes ago, D=-30 (minus thirty) gives trades entered less
than 30 minutes ago.

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L Specifies the number of trades/positions to be displayed. If you do not specify a number
using L, a maximum of one complete screen full will be displayed. If you wish all
trades/positions of the specified type to be displayed, you must enter the parameter L=0
(zero).

If you use the L parameter, and TRS/CPS retrieves more trades/positions than can fit on one
screen, the screen will show a page count in the bottom right hand corner. You can display
the next screenful of data by pressing [Next Screen]. Use [Previous Screen] to return to
previous screens. A maximum of 20 screens of data will be shown in ENQ, or 24 in BED. By
careful use of search parameters, you can reduce the amount of data that is retrieved.

When several screens of data are retrieved, press [F8] to go directly to the first screen,
or [F9] to go directly to the last screen.

S Allows you to specify an individual slip number. Consequently, you should use this search
parameter without a search code.

The X=, Y= and Z= parameters can be used to specify a particular originating member and/or
counterparty (or destination member in position transfers). If none of these are used when a
search is performed, all trades will be shown that relate to the operator who is making the
enquiry.

So, for example, X=ABC in TRS/Kerb TRS will retrieve all trades/claims for which the originator
member is ABC. In the CPS Position Transfers function, this will retrieve all position transfer
notifications for which ABC is the originator.

Use Z=ABC in TRS/Kerb TRS to retrieve all trades/claims for which ABC is either originator or
counterparty. Use Z=ABC in the Position Transfers function to retrieve all notifications for which
ABC is either the originator or the destination member.

Other Examples

	 	 	 
	 
	SELECTION	 	MEANING
	GH

	 	Display all outstanding trades (up to a maximum of one
screen).
	 
	 	 
	F=NCMJUNE

	 	Use mask file NCMJUNE to select trades for display.
	 
	 	 
	UR L=0

	 	Display all unregistered trades.
	 
	 	 
	UT M=H L=0

	 	Display all unmatched trades for March delivery.

	 
	 	 
	CA Y=AAA C=R

	 	Display confirmed allocations with
counterparty AAA in Long Gilts (up to a maximum of one screen)
	 

Wildcard Searches

It is possible to perform ‘wildcard’ searches for order and account references by using an
asterisk to indicate ‘any characters’. For example:

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	O=“*ABC”

	 	Retrieves trades with an order reference ending in ABC.
	 
	 	 
	O=“P12*”

	 	Retrieves trades with an order reference starting with 12
	 
	 	 
	R=“*”

	 	Retrieves trades containing an account reference.
	 
	 	 
	R=“A*Z”

	 	Retrieves trades whose account reference starts with A and ends
with Z.

Page 141

 

Chapter 3

Exchange Routing

‘Exchange routing’ is a facility which allows you to use a single TRS/CPS terminal to access
trading information relating to both LIFFE and the IPE. For the purposes of exchange routing, LIFFE
financial, equity and commodity contracts are treated as three separate ‘exchanges’. The terminal
can be logged on to all the available exchanges simultaneously, but it may only be actively used on
one exchange at a time. However, each exchange operates completely independently. Usernames and
passwords are different for each exchange and can only be set up by that exchange. Each individual
exchange retains responsibility for maintaining security of access to its own data.

Switching Exchanges

To switch exchanges, you must display the Exchange Selection Box. This is available from either the
TRS/CPS logon screen or the main menu. Note that, if you want to switch from one exchange to
another, you do not need to log off. However, it is not possible to switch exchanges when a TRS/CPS
function screen is displayed.

To see the Exchange Selection Box, hit [Select] at any time that the logon screen or main menu is
displayed.

	   	After a moment, your screen will display the Exchange Selection Box. All the
exchanges potentially available from your terminal will be listed. The exchanges
appear in no particular order, but the top one is always the home exchange. For
example:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(MEN) LIFFE TRS Main Menu	 	3—AUG—98 19:29 Operator : LIFFE	 	 
	 
	Enter Function :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1.	 	(TCI)	 	Trade/Claim Input	 	 	11_	 	 	(POS)	 	Position Summary	 	 	 	 	 
	2.

	 	(EDT)
	 	Edit by Slip No.
	 	 	12.	 	 	(DLV)
	 	Delivery Notifications
	 		 	 	 	 	 
	3.

	 	(REP)
	 	Display/Print Report
	 	 	13.	 	 	(STL)
	 	Settlement Instructions
	 		 	 	 	 	 
	4.

	 	(CAL)
	 	Confirm Allocations
	 	 	14_	 	 	(TOP)
	 	Position Transfers
	 		 	 	 	 	 
	5_

	 	(ENQ)
	 	Trade Enquiries
	 	 	15.	 	 	(AEX)
	 	Auto Exercise Instructions
	 		 	 	 	 	 
	6_

	 	(BED)
	 	Bulk Edit
	 	 	16.	 	 	(BPD)
	 	T-Bond Bo
	 	
	 	 	Select Exchange	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 	 
	 	
	 	 	     *LIFFE	 	 
	

	 	 	 	 	 	 	17.	 	 	(EXR)
	 	Exercise
	 	
	 	 	     *EQTY	 	 
	7.

	 	(KHP)
	 	Kerb Help Screen
	 	 	18_	 	 	(PPD)
	 	Positions
	 	
	 	 	      IPE	 	 
	8.

	 	(KED)
	 	Kerb Edit by Slip No.
	 	 	19_	 	 	(DPN)
	 	Delivery
	 	
	 	 	     *LCE	 	 
	9_

	 	(KEN)
	 	Kerb Trade Enquiries
	 	 	20_	 	 	(MGN)
	 	Margin No
	 	
	 	 	      	 	 
	10_

	 	(KBE)
	 	Kerb Bulk Edit/CAL
	 	 	21.	 	 	(PCF)
	 	Position
	 		 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	Save Screen Settings
	 	
	

	 	 	 	 	 	 	 	 	 	 	 	 	 	Password Change	 	 

The cursor appears over the current exchange, ie. the exchange you were viewing before you hit
[Select].

Page 142

 

Use the up and down arrow keys to move the cursor to the exchange you require, and hit [Return].

The terminal will attach itself to the chosen exchange and display the logon screen or main menu
for that exchange. If you have not yet logged on to that exchange today, then it will display the
logon screen. If you have already logged on and then switched to another exchange, it will be the
main menu.

If you decide not to switch exchanges, simply reselect the current exchange, and hit [Return]
Alternatively, hit [F11] to return to the screen from which you displayed the Exchange Selection
Box.

Sessions

	   	If you use the [Select] key to switch exchanges, your terminal will maintain
sessions on the different exchanges that you access. Within each session, all
activity is completely independent of the other sessions, and cannot affect them.
	 
	   	The only exception to this will occur if your local exchange closes its TRS system
or disables the exchange routing facility. If this happens, you will be logged out
of all current sessions, for security purposes.

It is possible to tell which sessions are logged in from the appearance of the Exchange Selection
Box. Those sessions that are logged in are marked with an asterisk, rather than with a hyphen. In
the example above, the LIFFE, LCE and Equities sessions are logged in, and the IPE session is not.

Session Timeout

The terminal has a ‘timeout’ facility that automatically logs you out of your current session after
an extended period of inactivity. If this occurs, a broadcast message will appear, informing you of
the ‘timeout’ and the fact that you will be moved to another active session. If there are no active
sessions, you will be switched to your home session, The message will indicate the exchange
affected by the timeout. If you leave your terminal unattended for long enough, it will eventually
log out of all sessions.

However, for security reasons, you must not use the timeout facility as a way of logging off at the
end of the day, since access will still be available until the timeouts take effect. You must
ensure that you have logged out of all sessions before you leave your terminal for the evening.

Broadcasts

When you are logged on to several exchanges simultaneously, your terminal will receive all relevant
broadcasts from all available exchanges. However, it will only display broadcast messages for the
currently selected exchange. If you wish to see

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broadcast messages for any of the other exchanges that you have logged into, you must switch
exchanges.

All broadcasts include the name of the exchange that sent them.

Page 144

 

Chapter 4

Reporting

Introduction

A wide variety of TRS, CPS and LCH reports are available for on-screen display or for printing
throughout the day, using the Display/Print Report function, menu option 3.

In addition, the Display/Print Report function allows you to set up a list of reports for printing
overnight, and to print the specified reports at the end of the day. This overnight printing
facility can only be used from one terminal for each exchange.

This chapter contains an explanation of how to use the Display/Print Report function to print or
display reports throughout the day, and to access the overnight printing facility.

Descriptions and examples of the reports that are available to TRS/CPS users appear in the Reports
chapters of the TRS Section, Kerb TRS Section and CPS Section of this guide. Reports are divided
into these sections according to the type of information that they show, and the particular system
(ie. TRS, Kerb TRS or CPS) to which the data relates.

Display/Print Report

Displaying Reports

To display a report on-screen at any time, select menu option 3, Display/Print Report, from the
main menu. A window will appear at the bottom of the menu.

Type the code of the report, followed by any parameters that you wish to apply, eg. MTS C=R to
display the Member’s Trading Statement (MTS) for Long Gilts only. In the Reference Section at the
back of this guide, you will find complete lists of valid report codes for all available TRS, CPS
and LCH reports, and of valid parameters.

If you wish to produce an LCH banking report, such as CAP - Yesterday’s Cover Account Posting, you
must enter the required report code followed, without a space in between, by either H (eg. CAPH),
to display house margining account data, or C (eg. CAPC), to display client margining account data.
Note that this does not apply to LCH price and rate reports, or any kind of TRS or CPS reports.

The chosen report will be displayed on the screen. If it is too long to fit on the screen, it will
automatically scroll until the end is reached. You can stop the report scrolling, to examine a
particular section of the report, by hitting [Fl] (Hold Screen).

If you stop the report, you can, if you wish, print the section of the report that is currently
displayed on the screen, by hitting [F2].

To resume scrolling, press [Fl] again.

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If you wish to stop a report before it has finished scrolling, hit any other key. When the report
has finished scrolling, hit any key to return to the main menu.

Printing Reports

To print a report, ensure that a printer is connected to your terminal, is on-line and is loaded
with paper.

Select the Display/Print Report facility from the main menu.

Enter the code of the report and any required search parameters, as described above under
‘Displaying Reports’, followed by a space, and the letter P, eg. MTS C=R P to print the Member’s
Trading Statement for Long Gilts only.

Adding Reports

     To add a report to the list, enter I in the Operation field.

The cursor will move to the Report field, below. Enter the code of the report you require (eg. MTS
- Member’s Trading Statement, CMR - Clearing Member Report, etc.), followed by any parameters you
wish to apply (eg. C=R, T=F, etc.). In the Reference Section at the back of this guide, you will
find lists of valid report codes, and of search parameters. If you do not specify a date for the
report, then a parameter indicating the current date will be applied automatically.

The specified report and parameters will be added to the list above, and you will return to the
Operation field.

Modifying Reports

To modify a report currently in the list, enter M in the Operation field.

The cursor will move to the following field, in which you should enter the line number of the
report you wish to modify.

Then enter the modified details in the Report field, below.

The chosen line will be modified accordingly, and you will return to the Operation field.

Deleting Reports

To delete a report from the list, enter D in the Operation field.

The cursor will move to the following field, in which you should enter the line number of the
report you wish to delete.

The chosen report will be removed from the list, and you will return to the Operation field.

Page 146

 

Storing the List of Reports

Unless you store the list of reports that you set up for night printing, it will be
cleared when the reports have been printed, and you will have to set up a new list
on the next day that you wish to use the night printing facility.

To store the list of reports that is currently displayed at any time, enter R in the
Operation field.

The message ‘Please confirm save Night Print options (Y/N)’ will appear at the
bottom of the screen. Enter Y to confirm your action.

A message will appear to indicate that the currently displayed list is being stored.

The saved list will apply on every trading day until another list is saved in the same way.

If you make any changes to the list of reports for night printing, on any particular day, but do
not re-save the list, the changes will apply on the day that you make them, but the previously
saved list will then apply from the following trading day.

Submitting the Reports for Printing

To submit the current list of reports for printing, enter S in the Operation field.

You should only use this operation at the very end of the day, and when the list contains all
required reports. After you select it, you will be unable to return to the TRS/CPS main menu, and
your terminal will no longer receive broadcast messages.

You should ensure that your printer is on-line and loaded with paper.

Once printing starts, your terminal will display a status message, indicating its progress, until
successful completion of all reports. A status report will be printed at the end of the reports,
indicating which were successfully printed and which, if any, were not.

If, for any reason, there is a system failure before printing is completed, you will return
automatically to the log-on screen, and no more reports wilt be printed.

If you wish to abort printing before it is completed, enter EXIT, and confirm this when you are
asked to. You will return to the log-on screen, and no more reports will be printed.

Quitting

To quit from the night printing facility without submitting the reports for printing, hit [F11].

The list of reports currently displayed will be stored, and you will return to the main menu.

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SCHEDULE ELEVEN

Exit Management

	1.  	Purpose
	 
	1.1  	This schedule defines the Exit Management Plan, which is the assistance that the Provider
shall provide under certain circumstances as outlined in this schedule. Such a plan may be
further set out in documents annexed hereto or to be agreed between the parties in accordance
with the Change Control Procedure.
	 
	2.  	Invocation
	 
	2.1  	In the event of a termination under section 16 of the Agreement the Provider shall provide
the following assistance to the IPE:

	 	•  	provision of documentation related to descriptions of TRS interface to ETS to
include the TRAMP Protocol Specification to be provided within four weeks of notice to
terminate;
	 
	 	•  	provision of reasonably sufficient access to Provider staff who are specialists in
TRS during any notice period and for a period of up to 3 months subsequent to
termination;
	 
	 	•  	provision of full details of Provider infrastructure implemented in External IPE
Member Firms for the use of TRS to be provided within six (6) months of notice to
terminate;
	 
	 	•  	provision of assistance during termination, charged at the Fee Rates, to clear Open
Member Positions; and
	 
	 	•  	provision of assistance in migrating Data from the System in an industry standard
readily accessible format.

	2.2  	The Provider shall co-operate fully and in accordance with this schedule with any Replacement
Provider engaged by IPE to assist in migration to an Alternative Trade Registration System
during any notice period including without limitation:

	 	2.2.1  	participation in the planning and resourcing of transferring responsibility
for the provision of the Services to a third party where applicable; and
	 
	 	2.2.2  	management of Provider’s involvement in that process and commitment of its
resources to that process, and to manage the timescales concerned.

	2.3  	For the avoidance of doubt, the Service Levels in respect of the Services shall be maintained
until the date termination takes effect.

	3.  	Costs

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	3.1  	Any Charges arising from the activities in this schedule shall be settled in accordance with
clause 17.3 of the Agreement.
	 
	4.  	Communication Programme

	4.1  	Within two (2) weeks of giving notice to terminate this Agreement, Provider shall notify all
Member Firms (both at IPE and externally) in writing of such termination.

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SCHEDULE TWELVE

Escrow Agreement

THIS AGREEMENT is made the       day of       200[  ]

BETWEEN:-

	(1)  	LIFFE Services Company Limited the registered office of which is at Cannon Bridge
House, I Cousin Lane, London EC4R 3XX (the “Owner”);

	(2)  	The International Petroleum Exchange of London Limited the registered office of which
is situate at International House, 1 St Katharine’s Way, London E1W 1UY (the “Licensee”); and

	(3)  	The National Computing Centre Limited the registered office of which is situate at
Oxford House, Oxford Road, Manchester, M1 7ED (“NCC”).

WHEREAS:-

	(A)  	The Licensee and the Owner have entered into an agreement dated [ ] (“the Agreement”)
relating to the provision by the Owner to the Licensee of a trade registration system (the
“System”) and the operation of the System by the Owner on behalf of the Licensee, under which,
inter alia, the Owner granted a licence to the Licensee to use certain software forming part
of the System.

	(B)  	Certain technical information and documentation describing such software is the confidential
property of the Owner and is required for the understanding, maintaining, modifying and
correcting of such software but is not required for the use thereof under the terms of the
Agreement.

	(C)  	The Owner acknowledges that in certain circumstances the Licensee may require possession of
such technical information and documentation in the form specified in schedule 1, up-to-date
and in good order.

NOW THEREFORE IT IS HEREBY AGREED as follows:-

1. Definitions

In this Agreement the following terms shall have the following respective meanings:-

	 	 	 
	“Agreement”

	 	as defined in Recital (A)
	 
	 	 
	“Full Verification
Service”

	 	means those bespoke tests agreed between the Licensee
and NCC for the verification of the Material
	 
	 	 
	“Material”

	 	the technical information and documentation described in schedule 1 hereto

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	“Modification”

	 	changes to the Material to reflect all modifications, updates and changes in the Packages issued by the Owner
	 
	 	 
	“Packages”

	 	the software for the System listed in schedule 2 hereto
	 
	 	 
	“Standard
Verification
Service”

	 	means those tests detailed in the Standard Verification Service published by NCC from time to time
	 
	 	 
	“System”

	 	as defined in Recital (A) hereto

	2.  	Warranties and confidentiality
	 
	2.1  	The Owner warrants:

	 	2.1.1  	that it owns the intellectual property rights in the Material and has
authority to enter into this Agreement.
	 
	 	2.1.2  	that Material lodged under clause 3.1 shall contain all information in human
readable form on suitable media to enable a reasonably skilled programmer or analyst to
understand, maintain and correct the Packages without the assistance of any other
person.

	2.2  	The Material and Modification shall remain the confidential property of the Owner and in the
event that NCC provides a copy thereof to the Licensee, the Licensee shall be permitted to use
such copy of the Material and Modifications only in accordance with the confidentiality
undertaking contained in schedule 4 and not further or otherwise. Copyright and all other
intellectual property rights in the Material and Modifications will remain with the Owner.
	 
	3.  	Escrow
	 
	3.1  	The Owner shall deliver a copy of the Material to NCC within thirty (30) days of the date
hereof.
	 
	3.2  	Subject to the provisions of clause 9, NCC shall bear no obligation or responsibility to any
person, firm, company or entity whatsoever to determine the existence, relevant, completeness,
accuracy, effectiveness or any other aspect of the Material and/or Modifications. NCC shall
have no responsibility to determine that whatever is deposited or accepted by it for deposit
is or is not Material and/or Modifications as herein defined.
	 
	4.  	Maintenance
	 
	4.1  	At all times while the Agreement is in force it shall be the responsibility of the Owner to
ensure that the Material as delivered to NCC is capable of being used to generate the latest
version of the Packages issued by the Owner to the

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	   	Licensee. The Owner shall accordingly deliver Modifications to NCC as and when necessary.
	 
	4.2  	The Owner shall further deliver to NCC a replacement copy of both the Material and any
Modifications within twelve (12) months of the last delivery thereof.
	 
	4.3  	NCC will inform the Owner and the Licensee as soon as possible after receipt of any copy of
the Material and/or Modifications that the same has been deposited.
	 
	5.  	NCC’s Duties
	 
	5.1  	NCC shall:

	 	5.1.1  	hold the Material in a safe and secure environment;
	 
	 	5.1.2  	inform the Owner and the Licensee of the receipt of any copy of the Material;
	 
	 	5.1.3  	in accordance with the terms of clause 10 perform those tests that form part
of its Standard Verification Service and/or Full Verification Service (as the case may
be) from time to time;
	 
	 	5.1.4  	at all times retain a copy of the latest verified deposit of the Material; and
	 
	 	5.1.5  	notify the Owner if it becomes aware at any time during the term of this
Agreement that the copy of the Material held by it has been lost, damaged or destroyed.

	5.2  	NCC shall not be responsible for procuring the delivery of the Material in the event of
failure by the Owner to do so.
	 
	6.  	Release of material and modification
	 
	6.1  	If any of the following events occur:

	 	6.1.1  	the Owner makes any arrangement or composition with its creditors or if a
bankruptcy petition is presented or if a receiving order is made against the Owner or
if an order is made or a resolution is passed for the winding-up of the Owner or an
order is made for the appointment of an administrator to manage the Owner’s affairs,
business and property or if a receiver is appointed of any of the Owner’s assets or
undertaking or if circumstances arise which entitles the Court or a creditor to appoint
a receiver or manager or which entitle the Court to make a winding-up order or if the
Owner takes or suffers any similar or analogous action in consequence of debt in any

part of the world;
	 
	 	6.1.2  	the Owner ceases to trade; or

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	 	6.1.3  	the Owner assigns copyright in the Material and/or Modifications and the
assignee fails within sixty (60) days of such assignment to offer the Licensee
substantially similar protection to that provided by this Agreement without
significantly increasing the cost to the Licensee then NCC will upon written request
from the Licensee in a form acceptable to the NCC (including provision by the Licensee
of a signed copy undertaking in the form appended as schedule 4 to this Agreement)
forthwith release the copy of the Material and/or Modifications to the Licensee. Such
written request shall be in the form of a statutory declaration made by the Licensee or
by an officer of the Licensee attesting that such an event has occurred and exhibiting
such documentation in support thereof as NCC shall reasonably require.

	6.2  	In the event that the Licensee gives written notice to NCC of a claim by the Licensee that
the Owner has:

	 	6.2.1  	defaulted to a material degree in any obligation to provide maintenance or
modification of the Packages (or either of them) under the Agreement; and
	 
	 	6.2.2  	has failed to remedy such default notified by the Licensee to the Owner then
NCC shall forthwith deliver to the Owner a copy of such notice received from the
Licensee.

	6.3  	Unless within ten (10) working days after receipt of the notice served pursuant to clause
6.2, the Owner shall deliver to NCC a counter-notice signed by a duly authorised officer of
the Owner that no such failure has occurred or that any such failure has been rectified (which
counter-notice shall be in the form of a statutory declaration made by the Owner or by an
officer of the Owner attesting that no such event has occurred or such failure has been
rectified as the case may be and exhibiting such documentation in support thereof as NCC shall
reasonably require), NCC will forthwith release a copy of the Material and copies of the
Modifications to a duly authorised officer of the Licensee.
	 
	6.4  	Where there is any dispute as to the occurrence of any of the events set out in clauses 6.1,
6.2 or 6.3 above or the fulfilment of any obligations referred to therein, such dispute will
be referred at the instance of either the Owner or the Licensee to the Chief Executive Officer
for the time being of NCC who shall give a decision within ten (10) working days of the date
of referral. The Chief Executive Officer’s decision shall be final and binding as between the
Owner and the Licensee except in the case of manifest error.
	 
	7.  	Confidentiality
	 
	7.1  	NCC agrees to maintain all information and/or documentation coming into its possession or to
its knowledge under this Agreement in strictest confidence and secrecy, not to make use
thereof other than for the purposes of this Agreement and not to disclose or release it other
than in accordance with the terms hereof.

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	7.2  	Any person authorised under this Agreement to have access to the copy of the Material or
copies of the Modifications shall sign a written undertaking binding himself to observe the
same degree of confidentiality as that imposed upon NCC in terms of clause 7.1.
	 
	8.  	Fees
	 
	8.1  	The Licensee will pay NCC’s fees as detailed in schedule 3 hereto.
	 
	9.  	Termination
	 
	9.1  	NCC may terminate this Agreement after failure by the Licensee to comply with a thirty (30)
day written notice from NCC to pay any outstanding annual fee.
	 
	9.2  	NCC may also terminate this Agreement by giving not less than ninety (90) days’ written
notice to both the Licensee and the Owner. In the event of termination the Licensee and the
Owner shall appoint a mutually acceptable new custodian on terms as nearly identical as those
contained herein subject to such modifications as the new custodian shall deem necessary and
which shall reasonably be acceptable to the Licensee and the Owner.
	 
	9.3  	If a new custodian shall not have been appointed within sixty (60) days of delivery of any
notice issued by NCC in accordance with the provisions of clause 9.2, the Owner or the
Licensee shall be entitled to request the President for the time being of the British Computer
Society to appoint a suitable new custodian upon such terms and conditions as he shall deem
appropriate. Such appointment shall be final and binding on the Owner and the Licensee.
	 
	9.4  	If the Agreement has expired or has been lawfully terminated this Agreement will
automatically terminate.
	 
	9.5  	The Licensee may terminate this Agreement at any time by giving written notice to the Owner
and the NCC.
	 
	9.6  	The Owner may not terminate this Agreement without the consent of the Licensee being given in
writing. In the event of such consent being given this Agreement may be terminated by the
Owner giving not less than ninety (90) days written notice to NCC.
	 
	9.7  	This Agreement shall also terminate upon the release of the copy of the Material and/or
Modifications in accordance with clause 6.1 above.
	 
	9.8  	Upon termination under the provisions of clauses 9.1, 9.2, 9.4, 9.5 or 9.6 NCC will deliver
the copy of the Material and/or Modifications to the Owner (unless jointly instructed to the
contrary by the Owner and Licensee).
	 
	9.9  	Upon termination under the provisions of clause 9.1 the Material and/or Modifications will be
available for collection by the Owner from NCC for thirty (30)

Page 154

 

	   	days from the date of termination. After such thirty (30) day period NCC will destroy the
Material and/or Modifications.
	 
	9.10  	Termination of this Agreement will not relieve NCC or its employees from the obligations of
confidentiality contained in clause 7.
	 
	10.  	Tests
	 
	10.1  	The Licensee shall be entitled to require NCC to carry out such tests (including the NCC’s
Standard Verification Service and Full Verification Service as the case may be) as in the
opinion of NCC would reasonably establish that the Material and Modifications contain true and
accurate versions of the source codes of the Packages. Any reasonable charges and expense
incurred by NCC will be paid by the Licensee PROVIDED THAT if in the opinion of the Chief
Executive Officer of NCC the Material and/or Modifications are substantially defective in
content any such reasonable charges will be paid by the Owner.
	 
	10.2  	NCC shall not be liable for any loss caused to the Licensee arising from the loss of or
damage to the Material and/or Modifications except to the extent that such loss or damage is
caused by the negligence of NCC, its employees, agents or subcontractors and in such event
NCC’s total liability in respect of all claims arising under or by virtue of this Agreement
shall not (except in the case and claims of personal injury or death) exceed the sum of
£500,000. NCC shall in no circumstances be liable to the Licensee for consequential loss of
any nature whatsoever whether for loss of profit, loss of business or otherwise.
	 
	11.  	Notices

All notices and communications to be given under this Agreement to or upon the respective parties
hereto shall be in writing and shall be given by delivering the same by hand at, or by sending the
same by pre-paid first class post to, the address of the relevant party set out above, or using
such other address as a party may notify to the other parties pursuant hereto from time to time, or
(in the case of a company) to its registered office from time to time.

	12.  	Governing law

This Agreement shall be governed by and construed in accordance with English Law.

Page 155

 

SCHEDULE 1

The Material — Technical Information

One or more (as necessary 6250 bpi magnetic tape(s) which include(s) a copy of the source programs,
build definition and configuration files of the Packages.

The Material shall be supplied with details of the following:

	 	1.  	Details of the deposit; full name and version details, number of media items,
media type and density, file or archive format, list or retrieval commands, archive
hardware and operating system details.
	 
	 	2.  	Name and functionality of each module/application of the Material.
	 
	 	3.  	Names and versions of development tools etc.
	 
	 	4.  	Documentation describing the procedures for building / compiling / executing /
using the software (technical notes, user guides).
	 
	 	5.  	Hardcopy directory listings of the contents of the media.
	 
	 	6.  	Name and contact details of employee(s) with knowledge of how to maintain and
support the Material.

SCHEDULE 2

The Packages

Trade Registration System

SCHEDULE 3

NCC Fees

	 	 	 	 	 
	 
	 	 	 	 
	1.

	 	Initial Fee
	 	£450
	 
	 	 	 	 
	2.

	 	Receptacle Fee
	 	£[250]
	 
	 	 	 	 
	3.

	 	Annual Fee

This fee will include up to 4 updates per annum
	 	£350
	 
	 	 	 	 
	4.

	 	Update Fee

(Per update after the first 4 updates per annum)
	 	£50
	 
	 	 	 	 
	5.

	 	Release Fee

plus reasonable expenses
	 	£350

     

Page 156

 

All fees are subject to VAT

Alt fees are reviewed by NCC from time to time

SCHEDULE 4

Confidentiality Undertaking

This undertaking is given on release of the Material and/or Modifications pursuant to an Escrow
Agreement dated the of 200 and made between (1) LIFFE Services Company Limited (the “Owner”), (2)
The International Petroleum Exchange of London Limited (the “Licensee”) and (3) The National
Computing Centre Limited (“NCC”).

	1.  	Definitions used in the Escrow Agreement will apply to this undertaking.

	2.  	In consideration of NCC delivering to the Licensee a copy of the Material and/or
Modifications the Licensee hereby undertakes with NCC and the Owner:-

	 	2.1  	to use the Material and/or Modifications only for the purposes of maintaining,
modifying and correcting the Packages;
	 
	 	2.2  	not to use the Material and/or Modifications for any other purpose nor disclose
it to any person save such of its employees or agents who need to know the same in
order to maintain, modify and correct the Packages exclusively on behalf of the
Licensee. In that event such employees or agents shall enter into a Confidentiality
Undertaking direct with NCC;
	 
	 	2.3  	to hold all media containing the Material and/or Modifications in a safe or
strong room or other secure environment when not in use;
	 
	 	2.4  	forthwith to destroy the same should the Licensee cease to be entitled to use
the Packages.

	3.  	NCC will upon receipt of the release fee plus its reasonable expenses deliver a copy of the
Material and/or Modifications to the Licensee within seven (7) working days.

AS WITNESS the hands of the duly authorised representative of the parties hereto the day
and year first above written.

	 	 	 	 	 
	SIGNED by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	LIFFE SERVICES COMPANY LIMITED

	 	 	)	 
	in the presence of:-

	 	 	)	 
	 
	 	 	 	 
	SIGNED by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	THE INTERNATIONAL PETROLEUM

	 	 	)	 

Page 157

 

	 	 	 	 	 
	EXCHANGE OF LONDON LIMITED

	 	 	)	 
	in the presence of:-

	 	 	)	 
	 
	 	 	 	 
	SIGNED by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	THE NATIONAL COMPUTING

	 	 	)	 
	CENTRE LIMITED

	 	 	)	 
	in the presence of:-

	 	 	)	 

Page 158

 

SCHEDULE THIRTEEN

Dependencies

There are no additional dependencies. IPE dependencies are as stated in clause 11 of the Agreement.

Page 159

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