Lehman Brothers - ACT Update

The ACT participated in urgent discussions over the weekend of 13/14 September as a member of The Foreign Exchange Joint Standing Committee (FX JSC), with respect to contingency arrangements for the bankruptcy filing by Lehman Brothers.

www.bankofengland.co.uk/markets/forex/fxjsc/

Most of these arrangements refer to the Interbank Market. It is thought that Lehman Brothers does not have any corporate exposures except where corporates are direct customers of Lehman’s.

All spot transactions for 15 September registered with CLS were settled. It is not expected that any payments from Lehman Brothers will be made after that date.

Please find below a link to the New York Foreign Exchange Committee's notice regarding the establishment by market participants of a contingent third party information clearinghouse to facilitate the unwinding of open FX positions.

www.newyorkfed.org/fxc