Clearing - Clearing Membership with Nodal Exchange

Introduction
Nodal Exchange transactions are cleared through LCH.Clearnet, the leading European energy and commodities Clearing House. Through the novation process, the Clearing House becomes the central counterparty of all transactions on the Exchange, significantly reducing the credit risk for all Exchange participants. In order to manage its risk exposure, the Clearing House only allows its General Clearing Members (GCMs) or Individual Clearing Members (ICMs) to submit trades for clearing. Nodal Exchange participants who are not members of LCH.Clearnet must form a clearing relationship with a GCM who is eligible to submit trades on Nodal Exchange. Participants interested in finding a GCM to clear for them on Nodal Exchange should email Nodal Exchange at .

Nodal Exchange invites financial institutions interested in offering clearing services on Nodal Exchange to either their clients or proprietary trading desks to become Clearing Members for Nodal Exchange. Clearing Members for Nodal Exchange are required to be (1) Clearing Members on the LCH.Clearnet – Nodal Exchange market and (2) registered as a Clearing Participant with Nodal Exchange.

Clearing Membership for LCH.Clearnet – Nodal Exchange Market
Institutions that are already members of an LCH.Clearnet market need to complete a brief application extending their membership to the Nodal Exchange market. Financial institutions that are not currently LCH.Clearnet Clearing Members need to first apply to become Clearing Members.

For additional information, please visit LCH.Clearnet Membership or contact the LCH.Clearnet membership department: .

Nodal Exchange Clearing Participant Status
Prospective clearing firms also need to apply for Nodal Exchange Clearing Participant status. For additional information on the application process and clearing participant application package, please contact Nodal Exchange Clearing Administration Department: .