Lehman Brothers International (Europe) (in administration) - exchange and clearing house communications

The joint administrators (the "Administrators") of Lehman Brothers International (Europe) (in administration) ("LBIE") wish to inform affected clients of LBIE about the current status of its position with various Recognised Investment Exchanges ("RIE"), Recognised Overseas Investment Exchanges ("ROIE"), Recognised Clearing Houses ("RCH"), Recognised Overseas Clearing Houses ("ROCH"), Multilateral Trading Facilities ("MTF") and Designated Investment Exchanges ("DIE").

An RIE is an investment exchange, and an RCH is a clearing house, which is recognised and supervised by the FSA under the Financial Services and Markets Act 2000. The FSA has also recognised and supervises a number of ROIEs and ROCHs under the Financial Services and Markets Act 2000. An MTF brings together multiple parties buying and selling interests in financial instruments in a way that results in a contract in accordance with the rules of the FSA. A DIE is considered by the FSA to provide an appropriate degree of protection for its customers.

Please note that the list below does not detail all RIEs, ROIEs, RCHs, ROCHs, MTFs and DIEs that LBIE is currently working with. The Administrators intend to update this communication in the coming days and weeks with further information.

For further details about the rules, regulations and actions of each RIE, ROIE, RCH, ROCH, MTF and DIE, please refer to their respective websites.

Chi-X Europe Ltd ("Chi-X")

The Administrators are not aware of any outstanding trades on Chi-X.

European Multilateral Clearing Facility N.V. ("EMCF")

EMCF issued a default notice on 15 September. This led to all outstanding trades being closed by EMCF.

Turquoise

The Administrators are not aware of any outstanding trades on Turquoise.

European Central Counterparty Ltd ("EuroCCP")

EuroCCP issued a default notice on 15 September. This led to all outstanding trades being closed out by Euro CCP. All related unsettled instructions remain frozen and will not be included in the CREST settlement processing.

MEFF Renta Variable ("MEFF")

The Administrators are not aware of any outstanding trades on MEFF.

Euronext

The Administrators are not aware of any outstanding trades on Euronext.

LCH.Clearnet

The Administrators have been working with LCH.Clearnet to transfer client positions to other brokers as nominated by LBIE's clients.  This exercise is now concluded.

EUREX & Eurex Clearing AG

The Administrators have been working with Eurex Clearing AG to transfer client positions to other brokers as nominated by LBIE's clients. This exercise has largely been concluded.

Euroclear UK & Ireland Limited ("EUI")

Accounts relating to LBIE and its UK affiliates remain disabled and all related unsettled instructions remain frozen and will not be included in CREST settlement processing.  For further information regarding OTC cash trades in CREST please refer to this update

The London Metal Exchange Limited ("LME")

The Administrators are not aware of any outstanding trades on LME.

London Stock Exchange plc ("LSE")

LSE issued a default notice on 15 September 2008.  The Administrators have been working with the LSE to provide the relevant data required to ensure the LSE can calculate the appropriate net settlement due to or from LBIE.  This relates to transactions not cleared through LCH.Clearnet (see LCH.Clearnet above), but which are subject to the LSE default rules.

EDX London Ltd ("EDX")

The Administrators are not aware of any outstanding trades on EDX. 

LIFFE

The Administrators are not aware of any outstanding trades on LIFFE. 

ICE Futures Europe ("ICE")

The Administrators are not aware of any outstanding trades on ICE.

In addition the Administrators would also like to draw your attention to the current status of LBIE in regards to the following international exchanges and clearing houses which are not recognised and supervised under the FSA as detailed above:

OMX Nordic Exchanges in Copenhagen, Helsinki and Stockholm ("OMX")

The Administrators are not aware of any outstanding trades on OMX.

Powernext SA

The Administrators are not aware of any outstanding trades on Powernext SA.

European Energy Exchange AG ("EEX")

The Administrators are not aware of any outstanding trades on EEX.

The European Commodity Clearing AG ("ECC")

The Administrators are not aware of any outstanding trades on ECC.

Safex Equity Derivatives ("Safex")

The Administrators are not aware of any outstanding trades on Safex.

Vienna Stock Exchange

The Administrators are not aware of any outstanding trades on the Vienna Stock Exchange.

Borsa Italiana SpA ("Borsa Italiana")

The Administrators are not aware of any outstanding trades on Borsa Italiana.

MTS Associated Markets SA ("MTSAM")

The Administrators are not aware of any outstanding trades on MTSAM.

MTS Espana, SON ("MTS Spain")

The Administrators are not aware of any outstanding trades on MTS Spain.

MTS Amsterdam

The Administrators are not aware of any outstanding trades on MTS Amsterdam.

The Administrators would like to thank all the exchanges and clearing houses for their continued co-operation and understanding.

Further details relating to the administration are included on the PwC website www.pwc.co.uk

Notes to Editors:

AV Lomas, SA Pearson, DY Schwarzmann and MJA Jervis were appointed as Joint Administrators of Lehman Brothers International (Europe) on 15 September 2008 to manage its affairs, business and property as agents without personal liability. AV Lomas, SA Pearson, DY Schwarzmann and MJA Jervis are licensed to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.