FSA and Euroclear UK & Ireland have published a briefing note setting out how parties to outstanding transactions with Lehman Brothers International (Europe) should act. The briefing directs them bilaterally to delete settlement instructions in the CREST system related to outstanding transactions, because the instructions are causing operational issues and increased risk for CREST. It says the underlying contractual terms must be negotiated on a counterparty-to-counterparty basis outside CREST if they have not already been closed out. FSA and Euroclear say this process will give all parties certainty that transactions by whatever route they were initially conducted (whether on exchange, through other trading platforms or over the counter) will not settle through CREST and will resolve the risks for the CREST system which have arisen out of Lehmans’ default.