Subject to regulatory approval, LCH.Clearnet SA will deliver its clearing services in respect of transactions in corporate bonds, government bonds and equities.

By choosing LCH.Clearnet SA as central counterparty, the Luxembourg Stock Exchange will deliver a competitive, automated and fully integrated solution from trading to clearing and settlement, allowing reduction in the costs of transactions in a secure and structured market environment.

LCH.Clearnet SA' s clearing member community will be able to access products listed in Luxembourg, a European standard-setter for international securities transactions, with over 42,000 products listed, including 29,000 international bonds or nearly 60% of the European total, representing 4,100 issuers from over 100 countries.

The launch of the service is expected to take place in December 2007.

This project follows the launch of a new trading technology by the Luxembourg Stock Exchange and is an excellent strategic fit for both parties. First, this straight-through-process will not only allow the Luxembourg market to comply with industry best practice in respect of central counterparty services but will also promote the Exchange by improving volume and liquidity. Second, LCH.Clearnet SA will further expand its service reach in a competitive environment.

Christophe Hémon, CEO of LCH.Clearnet SA, said, "We welcome this agreement with the Luxembourg Stock Exchange, which underlines our desire and capacity to clear new markets. The development of this link will increase the interaction between the respective LCH.Clearnet SA and Luxembourg Stock Exchange communities, and thus develop new business, mainly in corporate bonds, an area where the Luxembourg Stock Exchange is particularly well-placed."