Lombard Risk Management Regulatory News (LRM)

Lombard Risk Management plc ("Lombard Risk" or the "Company")

Trading Statement

The Board of Lombard Risk, a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, today provides an update on current trading and outlook, ahead of the Company's financial year ending on 31 March 2012.

The Company is currently in the process of negotiating several new contracts. If all of the contracts close and revenue recognition standards are met, the Company expects to achieve market expectations for the current financial year. However, if some of these contracts are delayed, or are lost, or revenue is deferred, it would be likely that the Company will fall short of market expectations, possibly by up to 10% in revenue and around a third in pre-tax profit. Irrespective of the results for the current year, the Company is cautiously optimistic of achieving market expectations for the year ending 31 March 2013. Growth is expected to be driven by mandatory regulatory reporting requirements, for example European Banking Authority (EBA) proposed Common Reporting (COREP) rules and requirements of the US Dodd-Frank Act, etc. as highlighted below, as well as continued expansion of the Company's collateral solutions across OTC, Clearing, Repos and Securities.

Lombard Risk has been working closely with several large global banks in the United States and Europe to analyse the impact of the Dodd-Frank Act regulation on their businesses and is pleased to announce the availability of Lombard Risk's "Dodd-Frank Act engine" solution for Dodd-Frank Act Title VII "Wall Street transparency and accountability - Regulation of OTC Swaps markets". This has a July 2012 implementation deadline for firms executing Swaps, to submit details in real-time and for the duration of the deal, to the appropriate Swap Data Repository. While this is an American regulation now, European equivalents are expected in 2013 from the European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Directive 2 (MiFID2) and there are equivalent Asian initiatives.

In addition, the Company is offering its REPORTER COREP regulatory compliance application to meet the EBA's Pan-European COmmon REPorting (COREP) regulations, which are also part of Basel III, which has January 2013 deadlines. This solution is in demand by both existing Lombard Risk clients and new prospects, many of which are now considering automating their regulatory compliance process to meet the huge increase in UK and Pan-European regulations that they face: COREP, FINancial REPorting (FINREP), Basel III and new FSA and Bank of England reports.