Lehman Is Suspended From European Energy Exchange

By Lars Paulsson

Sept. 15 (Bloomberg) -- Lehman Brothers Holdings Inc. was suspended from trading on the European Energy Exchange AG in Germany after the firm filed for bankruptcy protection in a New York court.

``The management of the exchange has decided to suspend Lehman Brothers as a trading and clearing member,'' the bourse's spokesman Daniel Wragge said today by phone from Leipzig.

Lehman's European subsidiary started trading derivatives on the EEX in February 2007. The U.S. investment bank had been trading electricity for day-ahead delivery and futures on the exchange.

The fourth-largest U.S. investment bank was suspended from the exchange as of 11:30 a.m. local time and was told to close its positions.

EEX's suspension of Lehman follows similar decisions by the London Metal Exchange, the world's largest copper bourse, the Liffe commodities exchange, and Intercontinental Exchange Inc.'s ICE Futures Europe which all banned the bank from trading. LCH.Clearnet Group Ltd., which clears trades, declared Lehman's European subsidiary a defaulter.

EEX, Europe's biggest electricity exchange after Nord Pool ASA, is in the process of merging its power trading activities with Powernext SA of France. The Paris-based exchange is considering what actions to take regarding Lehman, spokesman Richard Katz said today in a phone interview.

Lehman isn't a member of Nord Pool.

To contact the reporters on this story: Lars Paulsson in London at lpaulsson@bloomberg.net