Morgan Stanley Clears HSH Nordbank OTC Interest Rate Swaps on LCH.Clearnet

London —

Morgan Stanley, a market leader in derivatives trading and clearing, announced today that it has signed an agreement to be a clearing broker for HSH Nordbank. The first trade under this arrangement was cleared today. As part of this agreement, Morgan Stanley will clear HSH Nordbank’s interest rate swap business through LCH.Clearnet Ltd (LCH).

“We have welcomed Morgan Stanley’s partnership and expertise in OTC clearing. This is an important strategic move for HSH Nordbank as it secures market access at all times. In addition, with the implementation we are well positioned for future regulatory requirements. Morgan Stanley’s support and assistance in this process have been excellent,” said Frank Kolkmann, Head of Interest Rate Derivatives of HSH Nordbank AG.

"Becoming HSH Nordbank’s clearing broker is an important development for our OTC Clearing platform as we continue to grow our client franchise across domestic Europe. We have now cleared globally in excess of US$22bn notional value of OTC trades for our clients and are seeing an increased focus as they move to state of readiness in advance of the regulatory and capital changes”, said Andy Ross, Executive Director and European Head of OTC Client Clearing at Morgan Stanley.

Morgan Stanley recently announced that it has cleared some of the first OTC interest rate swaps transactions through LCH’s SwapClear Futures Commision Merchant (FCM) service for U.S. clients.

Morgan Stanley has been actively engaged in derivatives clearing for many years and provides clearing services for both OTC and Listed Derivatives for its clients globally. The Firm is currently live and clearing OTC derivatives at CME Group (interest rates and credit) and ICE Credit Clear (credit) in addition to LCH.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

As a bank for higher-end corporate clients from the mid-cap segment, a provider of specialised finance for real estate projects, a specialist in wealth management for private clients and foundations as well as a partner to savings banks, HSH Nordbank is firmly rooted in the regional economy. On an international scale, it numbers among the leading finance specialists in the area of shipping as well as energy and infrastructure. The Capital Markets unit takes care of funding and liquidity management, providing products in line with its clients’ requirements, e.g. interest-rate, currency and commodity-price hedging.  Established on 2 June 2003, HSH Nordbank AG is the result of the merger between Hamburgische Landesbank and Landesbank Schleswig-Holstein, with the two headquarters of the Bank being located in Kiel and Hamburg. Consolidated total assets amounted to EUR 132 billion on 30 June 2011. Worldwide the bank has a workforce of more than 3,300 full-time employees.

Media Relations Contact: Sebastian Howell, +44.207.425.5324