TO:	ALL CLEARING PARTICIPANTS
FROM:	CLIENT SERVICES AND SUPPORT
DATE:	August 19, 2005
SUBJECT:	FX Settlement CLS

Eurex US announced plans to launch Foreign Exchange (FX) products on September 23, 2005. Clearing Participants that wish to clear Eurex US FX products must use FX Settlement Bank Accounts; physical deliveries will be made through the Continuous Link Settlement (CLS) system.

FX settlement bank accounts:

Banking relationships must be established at one of the approved settlement banks for the purpose of effecting settlement transactions. The settlement currencies, for which bank accounts must be in place are: Canadian dollar, Swiss Franc, British Pounds, Japanese Yen and U.S. Dollars.

Clearing participants wishing to trade and to settle the above mentioned products must complete the “Participant Firm Foreign Banking Information Form” which will provide CCorp with the appropriate account numbers and banking institutions. The Clearing Corporation will utilize three banks for settlement purpose, Harris N.A, Brown Brothers Harriman &Co. and J.P. Morgan Chase. Forms should be returned to the Clearing Corporation no later then September 16, 2005.

Continuous Link Settlement (CLS):

CLS (Continuous Linked Settlement) is a real time global settlement process that reduces settlement risk caused by foreign exchange transactions occurring across different time zones. Both sides of a FX transaction are settled simultaneously in CLS Bank on a payment versus payment basis.

CLS Settlement Members and CLS Providers:

CCorp will utilize JP Morgan Chase as its Agent Bank. To effect delivery Clearing Participants will need to have a relationship with a CLS Settlement Member or CLS provider. There are several different ways to establish a relationship with CLS:

Settlement Members:

Settlement Members are shareholders of the CLS Group and have the financial and operational capability and sufficient liquidity to support their financial commitments to CLS. They can each submit settlement instructions directly to CLS Bank and receive information on the status of their instructions. Settlement Members have direct access and input deals on their behalf and on behalf of their customers.

User Member:

A User Member can submit settlement instructions for themselves and their customers. However User Members do not have an account with CLS Bank. Instead they are sponsored by a Settlement Member who acts on their behalf.

Third Party:

Third Parties are customers of Settlement and User Members that have no direct access to CLS. Settlement or user members must handle all instructions and financial flows which go to CLS. The terms on which members can act on behalf of third parties are governed by private arrangement. These do not directly involve CLS Bank and Third parties do not have any relationship with CLS Bank. Members may provide a trademarked CLS service to their Third Party customers.

Fourth Parties:

Fourth Parties, like third parties have no direct access to CLS. They are customers of Third parties and would utilize the latter’s arrangement with its Settlement Member.

Settlement Instructions:

Clearing Participants need to instruct their Settlement Member to submit to CCorp a CLS Banking Instruction notification form, which informs CCorp that the firm has made the necessary arrangements with the settlement Member and is ready to use the CLS system.

The following is the necessary counterparty information Clearing Participants should pass to their CLS provider for Eurex US currency deliveries using CLS:

CCorp’s Settlement member SWIFT ID: CHASGB2LTPA

CCorp’s SWIFT ID: BOTCUS44

Should you have any questions, please call or e-mail one of the following Client Services and Support Representatives: