SEC Division of Trading and Markets no-action letter: Barclays PLC

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
DIVISION OF
TRADING AND MARKETS
George H. White, Esq.

Sullivan & Cromwell LLP

One New Fetter Lane

London EC4A IAN, England
Re: Barclays PLC: Exemptive Relief from Rule 102 of Regulation M File No. TP 08-53 Dear Mr. White:
In your letter dated June 16,2008, as supplemented by conversations with the staff, you request on behalf of Barclays PLC, a public limited company organized under the laws of England ("Barclaysyy), an exemption fiom Rule 102 of Regulation M under . the Securities Exchange Act of 1934 ("Exchange Acty') in connection with a proposed capital raising transaction comprised of a Firm Placing, Conditional Placing, and Open Offer (collectivel~ the "Transactionyy). You seek an exemption to pennit certain Barclays affiliates to conduct specified transactions outside the United States ('7J.S.") in Barclays Shares during the distribution of Barclays Shares. Specifically, you request that: (i) the Derivatives Market-Making Units and Hedging Units be permitted to continue to engage 'in derivatives market￾making and hedging activities as described in your letter; (ii)'the Asset Managers be permitted to continue to engage in asset management activities as described in your letter; (iii) the'~rusteesand Personal Representatives be permitted to continue to engage in trust and estate activities as described in your letter; (iv) the Brokerage Units be permitted to continue to engage in unsolicited brokerage activities as described in your letter; (v) the Stock Borrowing and Lending Units and the Collateral-Taking Units be permitted to continue to engage in stock borrowing, stock lending, hd collateral-taking activities as described in your letter; (vi) the Banking Units be pennitted to continue to engage in banking activities as described in your letter; and (vii) the Employee Plan Trustees be permitted to continue to engage in employee plan activities as described in your letter. You also seek an exemption to permit certain Barclays affiliates to conduct specified transactions in the U.S. hiBarclays.Shares during the distribution of Barclays Shares. Specifically, you request that: (i) Barclays Capital Inc. ("BCI") be permitted to continue to engage in limited market activities relating solely to derivatives on U.S. indices that include Barclays as a component as described in your letter; (ii) Barclays Global Investors, N.A.-US ("BGI-USy') and Barclays Global Fund Advisors ("BGFA") be permitted to continue to engage . . in asset management activities as described in your

George H. White, Esq. letter; (iii) BCI and Barclays Global Investors Services ("BGIS) be permitted to continue to engage in unsolicited brokerage activities as described in your letter; and (iv) certain Stock Borrowing and Lending Units and the Collateral-Taking Units be permitted to continue to engage in stock borrowing, stock lending, and collateral-taking activities as described in your letter. In addition, you seek clarification that certain activities of BGFA in its capacity as the investment advisor to ishares Index Funds, as described in your letter do not constitute, directly or indirectly, abid for, a purchase or an attempt to induce any person to bid for or purchase Barclays Shares or Barclays ADSs in contravention of Rule 102 of RegulationM or, in the alternative, to provide exemptive relief to continue to engage in such activities. We have attached a copy of your correspondence to avoid reciting the facts set forth therein. Unless otherwise noted, each defined term in our response has the same meaning as defined in your letter. Response:
Based on the facts and representations that you have made in your letter, but without necessarily concurring with your analysis, the Commission hereby grants Barclays an exemption from Rule 102 of Regulation M to permit the Derivatives Market￾Making Units and Hedging Units, the Asset Managers, the Trustees and Personal Representatives, the Brokerage Units, the Stock Borrowing and Lending Units and Collateral-Taking Units, the Banking Units, the Employee Plan Trustees, BGFA, BCI, BGI-US, and BGIS (collectively, the "Companiesy') to continue to engage in the transactions described in your letter. In particular, in your correspondence you make the following key representations:
During the twelve months ended April 30,2008, the worldwide average daily trading volume FADTV") of Barclays Shares was approximately 74.2 million Barclays Shares, or approximately £42 1 million (approximately U.S .$834 million at April 30,2008 exchange rates) in value, and Barclays' market capitalization as of April 30,2008, was approximately £29.98 billion (or approximately U.S.$
59.36 billion);
The principal trading m'arket for Barclays Shares is the United Kingdom ("U.K.") and trading on the LSE accounted for approximately 94% of the worldwide average trading volume in Barclays Shares (including Barclays Shares represented by Barclays ADSs) during the 12 months ended April 30,2008; The number of Barclays Shares to be issued in the Transaction will represent approximately 33.33% of the Barclays Shares currently outstanding;

GeorgeH. White, Esq.
Barclays maintains and enforces written "Chinese Wall" policies and procedures to prevent material non-public information fiom passing between any area in which Market Activities are conducted and any other area of Barclays in which price-sensitive information relating to Barclays Shares, including information relating to the Transaction, would be available; Each of the Market Activities conducted by the Companies as describedin your letter represented substantially less than 11.29% of the worldwide average daily trading volume of Barclays Shares (including Barclays Shares represented by Barclays ADSs) for the 12months ended April 30,2008; Each of the Trustees and Personal Representatives, the Banking Units, and the Employee Plan Trustees conducts its activities outside the U.S., and each of the Derivatives Market-Making Units and Hedging Units, the Asset Managers, the Brokerage Units, and the Stock Borrowing and Lending Units and Collateral￾Taking Units conducts its activities both inside and outside the United States; The only Derivatives Market-Making Unit or Hedging Unit that conducts its Market Activities in the U.S., BCI, is registered with the Commission as a.broker￾dealer and is a member of Financial Industry Regulatory Authority, Inc. ("FINRA"); the only Asset Managers that conduct their Market Activities in the U.S., BGI-US and BGFA, are subject to supervision and regulation as, respectively, a nationally-chartered bank and an invest adviser registered with the Commission; and the only Brokerage Units that conduct their Market Activities inside the U.S., BCI and BGIS, are registered with the Commission as broker￾dealers and are members of the FINRA; The withdrawal of a significant market maker in derivatives on Barclays Shares in the primary market for those shares for an extended period of time would have hannful effects on the market for such derivatives worldwide, aswell as on the Hedging Units' ability to manage hedge positions maintained by them and their customers previously established in connection with this activity; Each of the Companies has confirmed that the activities for which it is requesting relief will be conducted in the ordinary course of its businesses and in accordance with the applicable laws of the U.K. and other non-U.S. laws; The receipt of Deposit Securities into an ishares Index Fund fiom an Authorized Participant does not entail a separate bid for or purchase of any of the securities contained within the Deposit Securities by a Barclays Affiliate, and an ishares Index Fund will not purchase Deposit Securities in the secondary market to llfill a purchaser's request to redeem ishares and, thus, the act of issuing or redeeming

George H. White, Esq. ishares by the Fund will not be expected to affect the market price of the Deposit Securities; Neither BGFA nor the respective ishares Index Fund has control over the occurrence or timing of such transactions, nor any knowledge or control over how a purchaser of the ishares acquires any Deposit Securities that are delivered to the respective ishares Index Fund or whether an investor which redeems its ishares subsequently disposes of the Deposit Securities removed fkom the respective ishares Index Fund in secondary market trading; and Any purchases of Barclays Shares will be effected in the ordinary course of business and consistent with the composition of the respective fund's Underlying Index and its overall investment objective and such purchases will not be effected for the purpose of facilitating the Transaction. The exemption is subject to the following conditions:

1. None of the transactions of the Companies described in your letter shall occur in
   the United States, with the exception of certain derivatives market-making and hedging, asset management, unsolicited brokerage, stock borrowing, lending, taking collateral, and ishares activities of certain Barclays affiliates as described in your letter;
2. All of the transactions described in your letter shall be effected in the ordinary
   course of business and not for the purpose of facilitating the Transaction;
3. The Transaction documents distributed to U.S. holders will disclose the
   possibility of, or the intention to make, the transactions described in you letter;
4. Barclays and each of the Companies will provide to the Division of Trading and
   Markets ("Division"), upon request, a time-sequenced schedule of all such transactions made during the Restricted Period. Such schedule will include:
   (a) size, broker (if any), time of execution, and price of the transactions; (b) the exchange, quotation system, or other facility through which the transactions occurred, and (c) whether the transactions were made for a customer account of a proprietary account;
5. Upon request of the Division, Barclays and each of the Companies will transmit
   the information requested in item 4 (above) to the Division at its offices in Washington DC within 30 days of its request;

George H. White, Esq.
6. Barclays and each of the Companies shall retain all documents and other
information required to be maintained pursuant to this exemption for at least two years following the completion of the Transaction;
7. Representatives of Barclays and each of the Companies shall be made available
(in person at the offices of the Commission in Washington, DC or by telephone) to respond to inquiries of the Division relating to their records; and 8, Except as otherwise exempted by this letter, Barclays and each of the Companies will comply with Regulation M. The foregoing exemption fiom Rule 102 of Regulation M is based solely on your representations and the facts presented to the staff and is strictly limited to the application of this rule to the proposed transactions. Such transactions should be discontinued, . pending presentation of the facts for our consideration, in the event that any material change occurs with respect to any of those facts or representations. In addition, your attention is directed to the anti-fi-aud and anti-manipulation provisions of the Exchange Act, including Sections 9(a) and 10(b), and Rule lob-5 thereunder. Responsibility for compliance with these and any other applicable provisions of the federal securities laws must rest with the participants in the various transactions. The Division expresses no view with respect to any other questions that the proposed transactions may raise, including, but not limited to, the adequacy of disclosure concerning, and the applicability of any other federal or state laws to, the proposed transactions. For the Commission,

by the Division of Trading and Markets,

pursuant to delegated authority,

Josephine J. Tao

Assistant Director

Attachment

SULLWAN & CROMWELL LLP
ALlMlTED UABlLlTY PARTNERSHIP
TELEPHONE: t44 (0)20-7959-8900
FACSIMILE: +44 (0120-7959-8950 &~%~?&&MMw+ WWWSVmXIM FRANKFURT PARIS WS ANOELES .NLWYORK PAL0ALTO. WASHINOTON, D.C. BEIJINO HOND KONG TOKYO MELOOURNI. SYDNEY Bv Hand and E-mail Division of Trading and Markets, Securities and Exchange Commission, 100F Street, N.E., Washington, D.C. 20549, United States of America. Attention: Mr. James A. Brigagliano, Associate Director Re: Barclays PLC: Request for Exemptive Relief fiom Rule 102 of Regulation M Dear Mr. Brigagliano:
We are writing on behalf of our client Barclays PLC, a public limited company organized under the laws of England ("Barclavs"), about the application of RegulationM to transactions by affiliates of Barclays (the "Barclavs Affiliates", and each a "Barclavs A1Ffiliate") in the ordinary shares of Barclays ("Barclays Shares"), and the American Depositary Shares, each representing the right to receive four Barclays Shares ("Barclavs ADSsy'), during the distribution of Barclays Shares and Barclays ADSs to be made by Barclays in connection with the Transaction (as defined below). Specifically, on behalf of Barclays, we ask the Commission to grant exernptive relief fiom Rule 102 of Regulation M to permit Barclays Affiliates to continue to engage, in the ordinary course of business as described below and in accordance with applicable local law, in the following activities during the Restricted Period (as defined below):
Derivatives Market Making and Hedging: As derivatives market makers, certain Barclays aliates (the "Derivatives Market￾Making Units"), including Barclays Bank PLC ("BBPLC"), Barclays Capital Securities Limited ("BCSL"), Barclays Capital Frece SA ("m), Barclays Capital Inc. ("BCJ", and together SuYiven Cmmwell LLP ia a registeredlknitedWipartnemh!q es$blbhed under the lawa of the Slrde of New Yd.

The personal llabllity of our partnen is limited to the axtent Wad hsuoh laws. Addiial IntormaUmia mailabk upon requcnt or st www.~ullcm.m.

A list d the pamas' nam and pmleMiDnal quaWications is available (or lnspedkn a( the above address.

All partner8 an either regktered foreign lawyers In England and Wah or sdiiitors. Rwuhted by the Solicitom RepulatlanAuthority.

U.S. Securities and Exchange Commission -2- with BBPLC, BCSL and BCF, "Barclavs Cavital"), Barclays Bank (Suisse) SA ("BBS" and Barclays Securities (India) Private -I) Limited ("BSIPLYy), create, redeem, issue, buy and sell derivatives on Barclays Shares for their own accounts and for the accounts of their customers. In addition, certain Barclays Affiliates (the "Hedging Units"), including Barclays Capital, BBS, BSIPL and Rank Investments and Credits (India) Limited ("RICLy'), solicit and effect trades in Barclays Shares for their own accounts and for the accounts of their customers for the purpose of hedging positions (or adjusting or liquidating existing hedge positions) of the Derivatives Market-Making Units and their customers that are established in connection with their derivatives market-making activities. The market activities of the Derivatives Market-Making Units and the Hedging Units are conducted primarily in the United Kingdom through the facilities of the London Stock Exchange (the "LSE"), - Virt-X, the Euronext.liffe exchange, in The Netherlands through the facilities of the Euronext Amsterdam exchange, in Belgium through the facilities of the Euronext Brussels exchange, in France through the facilities of the Euronext Paris exchange, in Portugal through the facilities of the Euronext Lisbon exchange (all of the Euronext exchanges together, "Eur~next'~), in Switzerland through the facilities of the Swiss Stock Exchange (the "SWX"), in Spain through the Spanish Stock Exchanges (the "w),in Italy through the Borsa Italiana (the "w),in Japan through the facilities of the Tokyo Stock Exchange (the 'T- and in each of these countries and other member states of the European Union through over-the-counter transactions. Limited market activities of the - Derivatives Market-Making Units and the Hedging Units, relating solely to derivatives on U.S. indices that include Barclays Shares or Barclays ADSs as a component, are also conducted in the United States. Trading in Barclays Shares by Asset Managers: Certain Barclays Affiliates (the "Asset Managers"), including BBPLC, BBS, To the extent that Barclays Affiliates or the jurisdictions in which or the facilities through which they conduct their Market Activities (as defined below) are identified in this letter, such identifications are intended to illustrate the main Barclays Affiliates, jurisdictions and facilities involved in the Market Activities. Barclays is requesting relief to cover the conduct of the Market Activities by all Barclays Wiates, in all jurisdictions and through all facilities, whether or not such Barclays AEliates, jurisdictions or facilities are specifically identified in this letter. However, Barclays is not requesting relief to cover the conduct of Market Activities in the United States except to the extent that this letter indicates that such Market Activities are conducted in the United States.

U.S. Securities and Exchange Commission -3-
BSIPL, Barclays Global Investors, N.A. ("BGI-US"), Barclays Global Investors (Deutschland) AG ("BGI-Germany, and together with BGI-US, "BB'), Barclays Global Fund Advisors ("BGFA"), Barclays Global Investors Limited ("BGIL", and together with BGI and BGFA, "Barclavs Global Investors"), Barclays Private Clients International Limited ("BPCIL"), Gerrard Investment Management Limited ("GIML"), Barclays Private Bank & Trust Limited ("BPBTL"), Barclays Private Asset Management (Monaco) S.A. ("BPAMM"), Barclays Wealth Fund Managers (Guernsey) Limited ('BWFMGL"), Barclays Wealth Fund Managers (Isle of Man) Limited ("BWFMIL"), Barclays Wealth Managers Espana SA SGIIC ("BWME"), Barclays Wealth Managers France S.A., Barclays Wealth Managers SGFIM FA, Barclays Wealth Managers (Jersey) Limited and Barclays International Fund Managers Limited, manage the assets of mutual funds, pension funds, group trusts, common trusts and investor portfolios (the "Mana~ed Funds"). As part of their ordinary investment management activities on behalf of the Managed Funds, the Asset Managers buy and sell Barclays Shares and Barclays ADSs for the Managed Funds' accounts. The market activities of the Asset Managers are conducted both inside and outside of the United States and primarily in the United Kingdom through the facilities of the LSE and over-the-counter transactions and the United States through the facilities of the NYSE. Trading in Barclays Shares by Trustees and Personal Representatives of Estates: Certain Barclays Affiliates (the "Trustees and Personal Remesentatives"), including BBPLC, BBS, GIML, BPBTL, BWFMGL, BWFMIL, Barclays Trust (Suisse) SA ("m), Barclays Bank Trust Company Limited ("BBTCL"), Barclays Wealth Trustees (Isle of Man) Limited ("BWTIL,"), Barclays Private Bank and Trust (IOM) Limited ("BPBTIL") and Barclays Private Bank & Trust (Cayman) Limited ("BPBTCL"), act as trustees, executors and/or personal representatives of testamentary, intervivos and charitable trusts as well as estates (the "Trusts and Estates"). As part of their responsibilities, the Trustees and Personal Representatives purchase and sell Barclays Shares for the accounts of the Trusts and Estates. The market activitiesof the Trustees and Personal Representatives are conducted solely outside of the United States and primarily in the United Kingdom through the facilities of the LSE and over-the-counter transactions.

U.S. Securities and Exchange Commission -4-
Unsolicited Brokerage: Certain Barclays Affiliates (the "Brokerarre Unitsyy), including Barclays Capital, BBS, BBTCL, BPCIL, GIML, BPBTL, BWFMIL, BPAMM, BSIPL, BWME, Barclays Global Investors Services ("BGIS"), Barclays Stockbrokers Limited ("w) and Barclays Sharedealing, effect or facilitate unsolicited brokerage transactions in Barclays Shares, Barclays ADSs and derivatives (including contracts for difference) on Barclays Shares and Barclays ADSs by placing orders for customers (including Barclays Affiliates). Brokerage Units also provide prime brokerage services to clients, including in certain cases taking legal and beneficial ownership of clients' Barclays Shares and Barclays ADSs. The market activities of the Brokerage Units are conducted both inside and outside the United States and primarily in the United Kingdom through the facilities of the LSE and over-the-counter transactions and in the United States through the NYSE, the American Stock Exchange (the "AmexYy) and the NASDAQ Stock Market ("NASDAQ'). Stock Borrowing and Lending and Taking Collateral: Certain Barclays Affiliates (the "Stock Borrowing and Lending Unitsyy), including Barclays Capital and Barclays Global Investors, borrow and lend securities, including Barclays Shares and Barclays ADSs, from and to customers (including Barclays Affiliates) as part of stock lending transactions in the ordinary course of business. In some circumstances, a customer may purchase Barclays Shares or Barclays ADSs fiom a third party in anticipation of lending them to a Stock Borrowing and Lending Unit, or a customer may arrange for a third party to purchase Barclays Shares or Barclays ADSs after the customer has borrowed them from a Stock Borrowing and Lending Unit. In addition, certain Barclays Affiliates (the "Collateral-Taking Unitsyy), including Barclays Capital, BTS, BBS, BBTCL, BWFMGL, BWME, BWTIL, BPBTIL, BSIPL, BWFMIL, RICL, Barclays Bank Ireland Public Limited Company ("BBIPLC"), Barclays Private Clients (Gibraltar) Limited ("BPCGL") and ABSA Bank Limited, accept Barclays Shares and Barclays ADSs as collateral for loans made by a Barclays Affiliate. In the event that the borrower defaults on a loan, Barclays may foreclose on the collateral and in some circumstances dispose of it, including by selling it in the market. The market activities of the Stock Borrowing and Lending Units and the Collateral-Taking Units are conducted both inside and outside of the United States, and primarily in the United Kingdom, various member states of the European Union, Switzerland, the

U.S. Securities and Exchange Commission -5-
Cayman Islands and the United States. The purchases of or bids for Barclays Shares or Barclays ADSs which may be deemed to result from these market activities may occur on any of a number of exchanges or in over-the-counter transactions around the world. Banking-Related Activities: In connection with their retail and commercial banking services, certain Barclays Affiliates engaged in banking (the b bank in^ Unitsyy),including BBPLC, BBS, BBTCL, BPBTL, BBIPLC, BPCIL, BPCGL, BWFMIL, BPBTIL, BSL, GIML, and Barclays International Investments (Malta) Limited and Gerrard Financial Planning Limited, engage in the marketing and sale of investment products, including funds which may include Barclays Shares, to banking customers. In addition, the Banking Units provide investment advice and financial planning guidance to banking customers, and this advice and guidance may include information which would assist customers in determining whether to purchase or sell Barclays Shares. The market activities of the Banking Units are conducted solely outside of the United States, and primarily in the United Kingdom, various member states of the European Union and Switzerland. The purchases of or bids for Barclays Shares or Barclays ADSs which may be deemed to result &om these market activities may occur on any of a number of exchanges or in over-the-counter transactions around the world. Trading in Barclays Shares Pursuant to Employee Incentive Plans: BBTCL, in its capacity as trustee of a Barclays employee share incentive plan called "Sharepurchase" (the "Sharmurchase Trusteeyy), purchases Barclays Shares on behalf of and for delivery to participating Barclays employees pursuant to the rules of Sharepurchase. The Sharepurchase Trustee may also sell Barclays Shares on behalf of such employees. In addition, Appleby Trust (Jersey) Limited, which is not a Barclays Affiliate (the "ESAS/PSP/ISP Trustee", and together with the Sharepurchase Trustee, the "Emolovee Plan Trusteesyy), in its capacity as trustee of Barclays employee share incentive plans called the "Executive Share Award Scheme" ("ESAS"), the "Performance Share Plan" ("psp")and the Incentive Share Plan ("myand together with Sharepurchase, ESAS and PSP, the "Emvlovee Plans"), purchases Barclays Shares on behalf of and for delivery to participating Barclays employees pursuant to the rules of ESAS, PSP and ISP at the recommendation or request of Barclays. The ESAS/PSP/ISP Trustee may also (1) sell Barclays Shares on behalf of such

U.S. Securities and Exchange Commission -6- employees, (2) purchase derivatives on Barclays Shares in lieu of purchasing Barclays Shares directly and (3) under certain circumstances, sell some of the Barclays Shares that it holds to third parties in exchange for derivatives that permit Barclays to repurchase the Barclays Shares at a later date, and potentially sell such derivative^.^ The market activities of the Employee Plan Trustees are conducted solely outside of the United States and primarily in the United Kingdom either through the facilities of the LSE, in over-thecounter transactions or by direct issuance from Barclays. We refer to these activities collectively as the "Market Actidties". The availability of the exemption that Barclays is requesting would be conditioned on the disclosure and record-keeping undertakings outlined below. In addition, on behalf of Barclays we ask the Staff to clarifL that certain activities of BGFA in its capacity as the investment advisor to the ishares Index Funds, as described hrtherbelow, do not constitute, directly or indirectly, a bid for, a purchase or an attempt to induce any person to bid for or purchase Barclays Shares or Barclays ADSs in contravention of Rule 102 of Regulation M or, in the alternative, to provide exemptive relief to continue to engage in such activities. Barclays has provided us with, and authorized us to make on its behalf, the factual representations set forth in this letter about the market for Barclays Shares and Barclays ADSs and the activities of ~arcl& Affiliates.
I. The Market for Barclays Shares
As of April 30,2008, Barclays had, issued and outstanding, 6,567,565,352 Barclays Shares and options to purchase approximately 412,137,098 Barclays Shares. As of April 30,2008, Barclays market capitalization was approximately E29.98 billion (or approximately US$59.36 billion at the exchange rates prevailing on April 30,2008), making Barclays the 16& largest company in the FTSE 100 share index in terms of market capitalization at that time. The worldwide average daily trading volume of Barclays Shares for the 12 months ended April 30,2008 was approximately 74.2 million The Employee Plan Trustees would enter into such derivatives transactions in order to allow them to hold a smaller inventory of Barclays Shares at any given time (for regulatory capital purposes) while nonetheless having comfort that they will be able to purchase Barclays Shares as needed to satisfy delivery obligations under the Employee Plans.

U.S. Securities and Exchange Commission -7-
Barclays Shares, or approximately E421 million (approximately US$834 million at April 30,2008 exchange rates) in value. The Barclays Shares are listed on the LSE and the TSE.~The overwhelmingly dominant trading market for the Barclays Shares is the United Kingdom. During the 12 months ended April 30,2008, the average daily trading volume of Barclays Shares on the LSE was approximately 69.7 million Barclays Shares, or approximately £397 million (approximately US$785 million at April 30,2008 exchange rates) in value. This represents approximately 94% of the worldwide average daily trading volume in the Barclays Shares (including Barclays Shares represented by Barclays ADSs). The LSE is the principal London exchange for equity and bond trading. The listing of securities is subject to the Listing Rules of the United Kingdom Listing Authority (the "UKLA") and the LSE's own Admission and Disclosure Standards. The LSE is also a prescribed market for the purposes of the market abuse regime in the United Kingdom, which is described in further detail below. Barclays is a foreign private issuer as defined in Rule 3b-4(c) under the Exchange Act and is subject to the information reporting requirements of the Exchange Act. Barclays Shares and Barclays ADSs are listed on, although only Barclays ADSs are traded on, the NYSE. During the 12 months ended April 30,2008, the average daily trading volume of Barclays ADSs on the NYSE was approximately 1.1 million Barclays ADSs, which represent 4.4 million Barclays Shares, or approximately 224.5 million (approximately US$48.6 million at April 30,2008 exchange rates) in value. This represents approximately 6% of worldwide average daily trading volume in the Barclays Shares (including Barclays Shares represented by Barclays ADSs).
11. The Market Activities for Which Relief is Sought
Barclays is a UK-based financial services group with a large international presence in Europe, the United States, Africa and Asia. It is engaged primarily in retail and commercial banking, credit cards, investment banking, wealth management and investment management services. In terms of market capitalization, Barclays is one of the largest financial services companies in the world and, at December 3 1,2007, had total consolidated assets of approximately El .2 trillion (US$2.4 trillion at the exchange rates prevailing on December 3 1,2007). It has been operating for more than 300 years and today has approximately 30 million customers and clients and nearly 135,000 employees in over 50 countries. Barclays is a leading global provider of investment management products and services and had 3,000 institutional clients around the world and over El. 1 Barclays has applied to delist the Barclays Shares fiom the TSEin the near future,and it is expected that the delisting will become effective by the end of June 2008. Barclays Shares are also listed on the NYSE,but as discussed below only Barclays ADSs are traded on the NYSE.

U.S. Securities and Exchange Commission -8- trillion (US$2.1 trillion at the exchange rates prevailing on December 3 1,2007) of assets under management at December 31,2007. For the 12 months ended April 30,2008, the worldwide average daily volume of Barclays Shares (including Barclays Shares represented by Barclays ADSs) traded by Barclays Affiliates was up to 8,219,463 Barclays Shares, or up to 11.29% of the total worldwide average daily tradin Shares represented by Barclays ADSs). 8volume of Barclays Shares (including Barclays Each of the Market Activities conducted by Barclays Affiliates as described below therefore represented substantially less than 11.29% of the worldwide average daily trading volume of Barclays Shares (including Barclays Shares represented by Barclays ADSs) for the 12 months ended April 30,2008.~ Derivatives Market Makina and Hedging. The Derivatives Market￾Making Units create, redeem, issue, buy and sell derivatives and other structured products relating to various securities, including Barclays Shares, for their own accounts and for the accounts of their customers. These derivatives and structured products, which may be cash-settled and/or physically-settled, include listed and over-the-counter options, warrants, convertible securities, futures, forwards, repurchase agreements, swaps, index futures,exchange-traded hds and similar products relating to Barclays Shares or to baskets or indices including Barclays Shares. Some of these derivatives and structured products are designed by the Derivatives Market-Making Units for sale to multiple customers ("Barclavs-Desinned Derivatives"), while others are custom-made products that the Derivatives Market-Making Units create based on the specifications of the individual customer or customers to whom the product will be sold ("Customer-Designed Derivatives"). Customer-Designed Derivatives may be linked directly to the performance of individual securities, including Barclays Shares, or to baskets or indices of securities which may include Barclays Shares. Barclays-Designed Derivatives are not linked to the performance of individual securities, but some are linked to indices or to baskets of securities which may include Barclays Shares. In connection with the redemption of derivatives or other structured products described in this paragraph, Derivatives Market-Making Units may also purchase Barclays Shares in order to deliver 4 For purposes of calculating average daily trading volume, we have excluded Barclays Shares that were traded pursuant to the share buyback program which Barclays conducted beginning in August 2007 (and which is described in our letter to you of August 2,2007). 5 Purchases or bids for Barclays Shares or Barclays ADSs which may be deemed to result from the activities of the Stock Borrowing and Lending Units and the Banking Unitsare not included in this calculation to the eFtent that such purchases or bids aremade by persons other than Barclays Affiliates.
However, this calculation does include assumedpurchases of Barclays Shares and Barclays ADSs by counterparties of the Derivatives Market-Making Units, based on the assumption that every such counterparty fully hedges any short-side exposure to the price of Barclays Shares and Barclays ADSs. Because many counterparties may not fully hedge such exposure, the actual percentage of worldwide average daily trading volume resulting from Market Activities was probably significantly less than 11.29%.

U.S. Securities and Exchange Commission -9- them to the derivative counterparties. The Derivatives Market-Making Units engage in these derivative market-making activities in order to provide liquidity to the derivatives market and to facilitate customers' derivatives transactions. The Hedging Units solicit and effect trades in Barclays Shares for their own accounts and for the accounts of their customers for the purpose of hedging positions (or adjusting or liquidating existing hedge positions) of the Derivatives Market-Making Units and their customers that are established in connection with the derivatives market￾making activities described above. The Derivatives Market-Making and Hedging Units engage in their Market Activities solely in the ordinary course of business and not in contemplation of the c ran sac ti on.^ These Market Activities are conducted primarily in the United Kingdom through the facilities of the LSE, in the United Kingdom, The Netherlands, Belgium, France and Portugal through the facilities of Euronext, in Switzerland through the facilities of the SWX,in Spain through the facilities of the SSE, in Italy through the facilities of the BI, in Japan through the facilities of the TSE and in each of these countries and other member states of the European Union through over-the-counter transactions. Limited market activities of the Derivatives Market-Making Units and the Hedging Units, relating solely to derivatives on U.S. indices that include Barclays Shares or Barclays ADSs as a component and representing less than 10%of the worldwide market activities of the Derivatives Market-Making Units and Hedging Units, are also conducted in the United States. The only Derivatives Market-Making Unit or Hedging Unit that conducts its Market Activities in the United States, BCI, is registered with the Commission as a broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA") Trading in Barclavs Shares bv Asset Managers. As part of their investment management activities, the Asset Managers buy and sell securities, including Barclays Shares and Barclays ADSs, for Managed Funds' accounts. Each of the Asset Managers manages one or more of three types of Managed Funds: those over which they have broad investment discretion ("Discretionary Manad Funds"); those that require client instruction or consent prior to making an investment ('Won-Discretionaw Managed Fundsyy);and tho& that require the Asset Managers to track the performance of an underlying index or to follow a prescribed investment model ("Index- or Model-Driven Funds"). For the avoidance of doubt, to the extent that any Barclays Affiliate purchases Barclays Shares or Barclays ADSs pursuant to the Transaction, and such purchases are made in the ordinary course of business and solely for investment purposes, Barclays does not consider such purchases to be in contemplation of the Transaction.

U.S. Securities and Exchange Commission -10-
Under applicable local laws, including the laws of the United Kingdom, New York and California, among others, the Asset Managers of Discretionary Managed Funds have fiduciary or similar duties to oversee the funds' investments in a manner that is in the best interests of the beneficiaries of the Discretionary Managed Funds. Under the same laws and the terms and conditions that govern the management of the Non-Discretionary Managed Funds, the Asset Managers have fiduciary or similar duties to make recommendations as to the Non-Discretionary Managed Funds' investments in a manner that is in the best interests of the beneficiaries of those funds. The Asset Managers also have a contractual duty to follow the investment instructions of the beneficiaries of the Non-Discretionary Managed Funds. Under the terms and conditions that govern the management of the Index￾or Model-Driven Funds, the Asset Managers are required to replicate, as closely as practicable, the performance of a particular securities market index or to invest the assets of the fund according to a prescribed investment model. The index to which an Index- or Model-Driven Fund is linked may include Barclays Shares or Barclays ADSs, and the investment model which an Index- or Model-Driven Fund is required to follow may require the purchase or sale of Barclays Shares or Barclays ADSs. In certain cases, the beneficial owner of a Managed Fund may be a Barclays Affiliate. In the event that a Barclays Affiliate were the beneficial owner of a Non-Discretionary Managed Fund, it would refrain from instructing the relevant Asset Manager to purchase or sell Barclays Shares or Barclays ADSs during the Restricted Period (as defined below). The Asset Managers engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted both outside and inside the United States and primarily in the United Kingdom through the facilities of the LSE and over-the-counter transactions and in the United States through the facilities of the NYSE. The only Asset Managers that conduct their Market Activities in the United States, BGI-US and BGFA, are subject to supervision and regulation as, respectively, a nationally-chartered bank and an investment adviser registered with the ~ornmission.~ Trading in Barclays Shares bv Tmtees and Personal Reuresentatives. The Trustees and Personal Representatives administer the Trusts and Estates, including through the investment of their assets. The Trustees and Personal Representatives generally have broad investment discretion over the assets, similar to the discretion of the Asset Managers with respect to Discretionary Managed Funds, and as with those Asset To the extent permitted under U.S. and applicable local laws, certain other Asset Managers may conduct their Market Activities outside of the United States on behalf of customers located in the United States.

U.S. Securities and Exchange Commission -1.1-
Managers, they have fiduciary or similar duties under applicable local laws (including the laws of the United Kingdom, Guernsey, Jersey, the Isle of Man, Hong Kong and the Cayman Islands, among others) to oversee the Trusts and Estates in a manner that is in the best interests of their beneficiaries. The Trustees and Personal Representatives engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted solely outside of the United States and primarily in the United Kingdom through the facilities of the LSE and over-the counter transactions. UnsolicitedBrokeraae. The Brokerage Units effect or facilitate unsolicited brokerage transactions in Barclays Shares, Barclays ADSs and derivatives (including contracts for difference) on Barclays Shares and Barclays ADSs by placing orders for customers (including Barclays Afliliates). These brokerage transactions arise fiom unsolicited buy or sell orders received by the Brokerage Units fiom their customers, although the Brokerage Units may solicit the other sides of these transactions. The Brokerage Units generally conduct these transactions as agents or riskless principals, although in certain cases Brokerage Units may guarantee a price for the customer (for example, the volume-weighted average price over the course of a trading day), in which case the Brokerage Unit executing the trade will assume the risk of any differential between the guaranteed price and the price at which they are able to purchase the securities in the market. As discussed further below, the Brokerage Units have in place information barriers to prevent price-sensitive information fiom passing between the Brokerage Units and any other area of Barclays in which price-sensitive information relating to Barclays Shares, including information relating to the Transaction, would be available. Brokerage Units also provide prime brokerage services to clients. In addition to various back-office and custodial services that these Brokerage Units provide, in some cases the Brokerage Units rehypothecate securities that are beneficially owned by clients to themselves or to other Barclays Affiliates. Following rehypothecation, the Barclays Affiliates are both the legal and beneficial owners of the securities, subject to contractual obligations to (i) pass distributions and powers of disposition through to the customer and (ii) deliver to the customer the securities or equivalent consideration on demand.' This rehypothecation structure is designed solely for purposes of facilitating stock lending transactions and is not intended to provide any Barclays Affiliate with control over the relevant securities. Clients consent to any such rehypothecation, and in turn the Brokerage Units give such clients reductions in the fees they charge. Although the Barclays Miiates are permitted to deliver equivalent consideration in lieu of the rehypothecated securities, in
practice they almost always deliver the securities themselves.

U.S. Securities and Exchange Commission -12-
Although the Brokerage Units fiom time to time engage in discussions with their customers regarding an investment in Barclays Shares or Barclays ADSs, none of the Brokerage Units, Barclays or other Barclays Affiliates will produce research reports concerning Barclays during the Restricted Period. Furthermore, the personnel of the Brokerage Units have been instructed not to make any recommendations to their customers with respect to Barclays Shares or Barclays ADSs during the Restricted Period. The Brokerage Units engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted both outside and inside the United States and primarily in the United Kingdom through the facilities of the LSE and over-the-counter transactions and in the United States through the NYSE, the Amex and the NASDAQ. The only Brokerage Units that conduct their Market Activities inside the United States, BCI and BGIS, are registered with the Commission as broker-dealers and are members of FINRA.~ Stock Borrowing and Lending and Takina Collateral. The Stock Borrowing and Lending Units engage in stock lending transactions with their customers (including Barclays Affiliates) in order to facilitate the settlement of trades, coverage of short positions and other transactions for which borrowed securities are commonly used. These stock lending transactions are conducted at the request of the customer and involve the securities designated by the customer, which may include Barclays Shares or Barclays ADSs. In some circumstances, a customer may purchase Barclays Shares or Barclays ADSs fiom a third party in anticipation of lending them to a Stock Borrowing and Lending Unit, or a customer may arrange for a third party to purchase Barclays Shares or Barclays ADSs after the customer has borrowed them fkom a Stock Borrowing and Lending Unit. The Collateral-Taking Units accept various foms of security, including Barclays Shares and Barclays ADSs, as collateral for loans made by those units or by other Barclays Affiliates. These loans are generally made either in connection with margin trading or as part of Barclays retail and commercial banking activities. In the event that the borrower defaults on a loan, Barclays may foreclose on the collateral and in some circumstances dispose of it, including by selling it in the market. The Stock Borrowing and Lending Units and the Collateral-Taking Units engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted both inside and In some circumstances other Brokerage Units may execute trades through third-party broker￾dealers, including U.S. broker-dealers who in turn execute the trades in the United States. In addition, other Brokerage Units may execute trades outside of the United States on behalf of customers located in the United States.

U.S. Securities and Exchange Commission -13- outside of the United States, and primarily in the United Kingdom, various member states of the European Union, Switzerland, the Cayman Islands and the United States. The purchases of or bids for Barclays Shares or Barclays ADSs which may be deemed to result from these Market Activities may occur on any of a number of exchanges or in over-the-counter transactions around the world. Bankina-Related Activities. The Banking Units provide a number of banking services to retail and commercial customers. These services include the marketing and sale of certain investment products, including funds which may contain Barclays Shares, to banking customers. Some of these funds are managed by Barclays Affiliates who are Asset Managers, while others are managed by third-party fund managers. Most funds marketed and sold by the Banking Units comply with the requirements set forth in the European Union's Council Directive 85/61 IIEEC, commonly known as the "UCITS ~irective".'~ The UCITS Directive provides, among other things, that no security included in a hd may represent more than 5% of the fund's assets (although Member States may raise this limit to lo%, provided that securities which represent more than 5% of the fund's assets do not in aggregate represent more than 40% of the fund's assets). In addition, the Banking Units provide investment advice and financial planning guidance to banking customers. This advice and guidance may include providing information which would assist customers in determining whether to purchase or sell Barclays Shares. Unlike Asset Managers, the Financial Planning and Advisory Units are not necessarily bound by fiduciary duties or specific contractual obligations in giving this advice and guidance. Howevery the Banking Units have enacted internal policies and procedures which prohibit them fiom making a recommendation to customers as to whether they should purchase or sell Barclays Shares; the units provide only objective information about Barclays Shares andlor a summary of the views of a fixed group of research analysts who publish information about Barclays. The Banking Units engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted solely outside of the United States, and primarily in the United Kingdom, various member states of the European Union and Switzerland. The purchases of or bids for Barclays Shares or Barclays ADSs which may be deemed to result fiom these Market Activities may occur on any of a number of exchanges or in over-thecounter transactions around the world. Trading in Barclays Shares Pursuant to Employee Incentive Plans. Certain employees of Barclays who are resident in the United Kingdom are eligible to 'O A limited number of funds are Won-UCITS Retail Schemes", or "NURS". NURS are subjectto similar restrictions as UCITS-compliant funds, although NURS may (but
generally do not) invest up to 10%of their assets in the securities of the single issuer.

U.S. Securities and Exchange Commission -14- participate in Sharepurchase. Participation allows an employee to receive Barclays Shares (1) in exchange for a portion of the employee's monthly salary, (2) as awards and (3) in exchange for dividend payments on Barclays Shares received pursuant to (1) or (2). In order to effect the acquisition of Barclays Shares for, or grant of Barclays Shares to, participating employees pursuant to Sharepurchase, the Sharepurchase Trustee purchases Barclays Shares in the secondary market and delivers them to each employee's account. At the request of an employee under certain circumstances, the Sharepurchase Trustee may also sell Barclays Shares in the employee's account. Certain employees of Barclays are also eligible to participate in ESAS, PSP andlor ISP. ESAS, PSP and ISP are all administered by the ESAS/PSP/ISP Trustee, an independent trustee not affiliated with Barclays. Pursuant to the terms of ESAS, PSP and ISP, Barclays recommends that the ESAS/PSP/ISP Trustee grant awards of Barclays Shares to eligible employees. Barclays also recommends that the ESASRSPIISP Trustee buy Barclays Shares in order to cover the awards granted by the ESAS/PSP/ISP Trustee when they vest. As long as Barclays recommendation is within the terms of the rules that govern ESAS, PSP or ISP, as applicable, the ESAS/PSP/ISP Trustee would generally expect to follow Barclays recommendation. The ESASRSP/ISP Trustee purchases Barclays Shares in the secondary market (or potentially by direct issuance fkom Barclays in the case of PSP). The ESAS/PSP/ISP Trustee may also (1) sell Barclays Shares on behalf of such employees, (2) purchase derivatives on Barclays Shares in lieu of purchasing Barclays Shares directly and (3) under certain circumstances, sell some of the Barclays Shares that it holds to third parties in exchange for derivatives that permit Barclays to repurchase the Barclays Shares at a later date, and potentially sell such derivatives. Although the ESAP/PSP/ISP Trustee is not a Barclays Affiliate, Barclays recommendations could be deemed to constitute attempts to induce the purchase of Barclays Shares for purposes of Rule 102. The Employee Plan Trustees have fiduciary duties under applicable local laws (including the laws of the United Kingdom and Jersey) to conduct their Market Activities in a manner that is in the best interests of the employees participating in the Employee Plans. The Employee Plan Trustees engage in their Market Activities solely in the ordinary course of business and not in contemplation of the Transaction. These Market Activities are conducted solely outside of the United States and primarily in the United Kingdom either through the facilities of the LSE, in over-the-counter transactions or by direct issuance fiom Barclays.
111. The Transaction
Barclays intends to announce a capital-raising transaction. The transaction will be comprised of three components. First, Barclays expects to issue new Barclays Shares to certain strategic investors at a fixed price (the "Firm Placing"). The

U.S. Securities and Exchange Commission -15-
Finn Placing is expected to be conditional only upon admission of the new Barclays Shares to the Official List of the UK Listing Authority (the "UKLA"), and will not be subject to the clawback described below. Second, Barclays expects to offer an additional number of new Barclays Shares at a fixed price to holders of Barclays Shares (including holders of Barclays ADSs through the Barclays ADS depositary) at the applicable record dates (the "Open Off&'). Certain strategic and institutional investors will agree to subscribe for the Barclays Shares to be offered in the Open Offer (the "Conditional Placing" and, together with the Firm Placing and Open Offer, the "Transaction"). Their subscriptions, however, will be subject to clawback to the extent that some or all of the shares subject to the Conditional Placing are pre-emptively subscribed for by Barclays existing shareholders in the Open offer. '' The subscriptions under the Finn Placing and the Conditional Placing will be made by the relevant strategic and institutional investors for their respective investment purposes and not with a view to further distribution. The Open Offer will be made available to U.S. holders of Barclays Shares and holders of Barclays ADSs worldwide pursuant to a prospectus that will have been filed with the Commission on a Registration Statement on Form F-3 (the "Form F-3"). Barclays shareholders residing outside the United States and Canada will be fiunished with a prospectus which will have been approved by the UKLA. Barclays is authorized by resolution of Barclays Shareholders to issue up to a maximum of one-third of its issued share capital (approximately 2.189 billion shares) during the period expiring on the date of the 2009 Annual General Meeting of Barclays Shareholders or on June 30,2009 (whichever is the earlier). At the closing Barclays Share price on June 1 1,2008, this maximum allotment represented a value of £6.710 billion. The actual number of Barclays Shares which will be issued in the Transaction, however, will be determined prior to commencement of the rans sac ti on.'^
IV. Application of Regulation M
In connection with the Transaction, Barclays will offer Barclays Shares and Barclays ADSs. As a result, Barclays will be considered to be engaged in a distribution in the United States for purposes of Regulation M. Subject to enumerated 11 Barclays expects to determine the number of shares to be subscribed for in each of the Firm Placing and the Conditional Placing and, consequently, the number of shares to be offered in the Open Offer as well as the price at the close of business on the business day prior to announcement of the Transaction. It is expected that the price to be paid for the Barclays Shares in the Open Offer will be the same as that in the Conditional Placing. 12 Please see footnote 1 1.

U.S. Securities and Exchange Commission -16- exceptions, Rule 102 of Regulation M makes it unlawful for an issuer or affiliated purchaser, directly or indirectly, to bid for, purchase, or attempt to induce any person to bid for or purchase a covered security during the applicable restricted period. Barclays believes that, under Regulation My the restricted period for the distribution (the "Restricted Periody') will begin one business day prior to the determination of the offering price in the Open Offer and will end upon the completion of the Open Offer in the United States. Accordingly, the Restricted Period for Barclays could last for a number of weeks. As subsidiaries of Barclays that regularly purchase securities for their own accounts andlor the accounts of others, Barclays Affiliates may be deemed to be "affiliated purchasers" of the issuer, as defined in Rule 100 of Regulation M.'~ Accordingly, their market activities may be subject to Rule 102 throughout the Restricted Period. No Barclays Affiliate will participate in the Transaction as a distribution participant and, therefore, Rule 101 will not apply. As such, we request relief for the market activities described in this letter under Rule 102. Under Rule 102, Barclays Affiliates would not be permitted to bid for or purchase, or attempt to induce any person to bid for or purchase, Barclays Shares or Barclays ADSs during the Restricted Period, except to the extent that one of the specified exceptions under the applicable rule is available. There are no exceptions available under Rule 102 that would permit Barclays Affiliates to engage in the Market Activities described in Section I1 of this letter.14 Therefore, without the requested exernptive relief, Barclays Affiliates would not be permitted to engage in their respective activities for the entire duration of the Restricted Period. As Barclays is a significant market maker in derivatives on Barclays Shares, if the Derivatives Market-Making Units and the Hedging Units are precluded fiom conducting market-making activities in the derivatives or from effecting hedging transactions in Barclays Shares relating to the derivatives, the application of Regulation M could have adverse effects on the market for such derivatives worldwide, as well as on the Hedging Units' ability to manage hedge positions maintained by them and their customers previously established in connection with this activity. These derivatives l3 Certain Barclays AEliates may qualify for the exception to the definition of "affiliated purchaser" set forth in paragraphs (3)(i)-(iii) thereof, but insofar as at least some Barclays Affiliates have officers and employees in common with Barclays that direct, effect or recommend transactions in securities, the exception will not be available to all Barclays Affiliates. l4 With respect to derivatives market-making activities,-while derivatives on Barclays Shares and Barclays ADSs that cannot be converted into, and do not in
significant part determine the value of, Barclays Shares or Barclays ADS generally would not be "covered securities7' under Regulation . M, the derivatives market making that the Derivatives Market-Making Units conduct may, in some cases, be regarded as involving inducements to purchase Barclays Shares. To avoid uncertainty, we ask that the exemption we are requesting apply to the derivatives market making as well as the hedging and other activities in Barclays Shares described in this letter.

U.S. Securities and Exchange Commission -17- market-making and hedging activities historically have represented a small proportion of all trading in Barclays Shares, and Barclays believes that these activities will not have a significant effect on the market price of Barclays Shares. The Asset Managers have fiduciary or similar duties under applicable local laws to invest the assets of Discretionary Managed Funds and to make recommendations as to the investment of the assets of Non-Discretionary Managed Funds in the best interests of the beneficiaries of those funds. Accordingly, the Asset Managers would be prohibited by law from trading in Barclays Shares or Barclays ADSs unless the Asset Manager believed that such trading was in the best interests of the Discretionary Managed Funds' or the Non-Discretionary Managed Funds' beneficiaries. In addition, the Asset Managers have contractual obligations to invest the assets of Non-Discretionary Managed Funds and Index- or Model-Driven Funds according to the instructions of the beneficiary or in a pre-specified manner. Accordingly, the Asset Managers would be prohibited by contract from trading in Barclays Shares or Barclays ADSs unless doing so complied with the terms and conditions that governed the management of such Non￾Discretionary Managed Funds or Index- and Model-Driven Funds. These asset management activities historically have represented a small proportion of all trading in Barclays Shares, and Barclays believes that these activities will not have a significant effect on the market price of Barclays Shares. The Trustees and Personal Representatives similarly have fiduciary or similar duties under applicable local law to invest the assets of the Trusts and Estates in the best interests of their beneficiaries. Accordingly, the Trustees and Personal Representatives would be prohibited by law fiom trading in Barclays Shares unless the Trustees and Personal Representatives believed that such trading was in the best interests of the beneficiaries of the Trusts and Estates. The activities of the Trustee and Personal Representatives historically have represented a small proportion of all trading in Barclays Shares, and Barclays believes that these activities will not have a significant effect on the market price of Barclays Shares. In the absence of an exemption the Brokerage Units would be unable to execute or facilitate unsolicited brokerage orders submitted by their customers in the normal course of the Brokerage Units' business, thereby forcing their customers to take their orders elsewhere or to refiain fiom trading. It would place a significant burden on these customers to require them to transfer their Barclays Shares and Barclays ADSs to a securities account elsewhere, or to have the Brokerage Units place orders with another bank, in order to make trades with respect to Barclays Shares and Barclays ADSs. Moreover, the Brokerage Units would be likely to lose a significant number of these
customers if they were prevented from providing them with customary facilitation services during the Restricted Period. The activities of the Brokerage Units are unsolicited, and historically they have represented a small proportion of all trading in

U.S. Securities and Exchange Commission -18-
Barclays Shares. Barclays believes that these activities will not have a significant effect on the market price of Barclays Shares. The activities of the Stock Borrowing and Lending Units and the Collateral-Taking Units do not constitute bids for, purchases of or inducements to make bids for or purchases of Barclays Shares or Barclays ADSs (or reference securities with respect thereto) in the traditional sense. Nevertheless, Barclays believes that in some circumstances (1) the activities of the Stock Borrowing and Lending Units may be deemed to be attempts to induce a bid or purchase because a customer may purchase Barclays Shares or Barclays ADSs fiom a third party in anticipation of lending them to a Stock Borrowing and Lending Unit, or a customer may arrange for a third party to purchase Barclays Shares or Barclays ADSs after the customer has borrowed them fiom a Stock Borrowing and Lending Unit; and (2) the activities of the Collateral-Taking Units may be deemed to be attempts to induce a bid or purchase because Barclays may foreclose on collateral that includes Barclays Shares or Barclays ADSs and dispose of it, including by selling it in the market. Barclays therefore seeks exemptive relief in order to continue to conduct these activities during the Restricted Period. It would place a significant burden on customers not to be able to borrow Barclays Shares or Barclays ADSs fiom any Stock Borrowing and Lending Unit, and as with the unsolicited brokerage activities described in the previous paragraph, the Stock Borrowing and Lending Units would likely lose a significant number of customers if the Stock Borrowing and Lending Units could not continue to provide customary stock lending services. Similarly, if borrowers could not pledge their Barclays Shares or Barclays ADSs to the Collateral-Taking Units, the borrowers would be burdened with finding either other assets to pledge or other sources of debt. Because stock lending transactions are intended only to help facilitate customer transactions and do not themselves involve the sale or purchase of Barclays Shares or Barclays ADSs, and Collateral-Taking Units would only sell Barclays Shares or Barclays ADSs following a default by the borrower, Barclays believes that it is unlikely that the activities of Stock Borrowing and Lending Units and the Collateral-Taking Units would have a significant effect on the market price of Barclays Shares or Barclays ADSs. The marketing and sale of funds that include Barclays Shares by the Banking Units would generally qualify as basket transactions for purposes of the exemption provided by Rule 1010>)(6). All or substantially all of the fimds contain a minimum of 20 securities, and Barclays Shares do not represent more than 5 percent of the value of such funds.15 The Banking Units may not rely on the exception for basket IS The current rules for investment by a UCITS fund enable the fund to invest a maximum of 10% of its net assets in any single issuer for up
to 40%of fund's net assets; the remaining 60% of the fund's net assets are then capped at a maximum investment of 5% of the fund's net assets in any single issuer. As a result the minimum number of investments possible in such funds is 16 securities, and the maximum percentage of any such kd's assets that can be invested in one issuer is 10%. Meanwhile, the rules for NURS allow such a fund to invest up to 10% of its net

U.S. Securities and Exchange Commission -19- transactions because they are affiliated purchasers of the issuer. However, Barclays believes that the fact that Barclays Shares represent such a limited percentage of the value of, and the number of securities included in, each fund and that the Banking Units market and sell these funds in the ordinary course of business, the marketing and sale of these funds is unlikely to have a significant effect on the market price of Barclays Shares. Moreover, the financial planning and investment advisory activities of the Banking Units do not constitute bids for or purchases of Barclays Shares, and Barclays believes that it is unlikely that such activities would constitute inducements to purchase Barclays Shares. If these activities did constitute inducements to purchase Barclays Shares, Barclays believes that the policies and procedures which prohibit it fiom recommending the purchase or sale of Barclays Shares are sufficient to preclude such activities fiom having a significant effect on the market price of Barclays Shares. Finally, purchases of Barclays Shares by the Employee Plan Trustees are intended only to facilitate the grant of awards pursuant to the terms of the Employee Plans. If Barclays employee incentive plans were structured to allow Barclays to award Barclays Shares directly to participating employees, rather than having the Employee Plan Trustees purchase the Barclays Shares on the employees' behalf, these purchases would not be prohibited by Rule 102. Moreover, the Employee Plan Trustees are bound by fiduciary or similar duties to conduct their activities in the best interests of the employees participating in the Employee Plans. The activities of the Employee Plan Trustees historically have represented a small proportion of all trading in Barclays shares,16 and Barclays believes that these activities will not have a significant effect on the market price of Barclays Shares. All of the foregoing activities historically have represented a small proportion of all trading in Barclays Shares, and for the 12months ended April 30,2008, the average daily volume of Barclays Shares traded pursuant to all the foregoing assets in any single issuer,so the minimum number of investments possible in such fundsis 10 ' securities. Notwithstanding this, Barclays believes that all funds currently marketed and sold by the Banking Units contain at least 20 securities and that Barclays Shares represent no more than 5% (and generally much less than 5%) of the value of any fund, and Barclays believes that it would be highly unusualfor a Banking Unit to market or sell a fund that contains less than 20 securities or with respect to which Barclays Shares represent more than 5% of the value of the hd

l6 The ESAS/PSP/ISP Trustee makes most of its purchases in connection with ESAS, PSP and ISP over the course of several consecutive days each year. On those days, the ESAS/PSP/ISP Trustee's purchases may represent a significant proportion of all trading in Barclays Shares. However, none of those days are expected to occur during the Restricted Period. The ESASIPSPASP Trustee may make purchases at other times of the year, including during the Restricted Period, but Barclays expects that any purchases by the ESAS/PSP/ISP Trustee during the Restricted Period will constitute a very small proportion of all trading in Barclays Shares on the day on which such purchases are made.

U.S. Securities and Exchange Commission -20- activities combined represented 1 1.29% of the worldwide average daily trading volume of Barclays Shares (including Barclays ADSs). Barclays also notes that it has established information barriers to prevent price-sensitive information fiom passing between any area in which Market Activities are conducted and any other area of Barclays in which price-sensitive information relating to Barclays Shares, including information relating to the Transaction, would be available. Accordingly, during restricted periods prior to announcements of earnings results or other material developments that have not yet become public, the Barclays Affiliates are generally able to continue their respective Market Activities. Barclays will continue to maintain these information barriers during the distribution of Barclays Shares and Barclays ADSs in connection with the Transaction. Furthermore, the Barclays Affiliates will continue to conduct their Market Activities in the ordinary course of business, and any involvement in those activities by senior management will take place in the ordinary course of business and will not be intended to influence the Market Activities in light of the Transaction. The Market Activities described in this letter are important aspects of Barclays business as a major global financial institution and, therefore, interrupting those activities for such an extended period could also have an adverse impact on Barclays business, including its ability to properly manage its risks. Barclays Shares and Barclays ADSs would easily qualifj. as actively traded securities that are exempt under Rule 101 (c)(l) of Regulation My with an average daily trading volume in the 12 months ended April 30,2008 of approximately £421 million (or approximately US$834 million at the exchange rates prevailing on April 30,
2008) and a public float value significantly in excess of US$5O billion as of April 30,
2008. Regulation M normally would not interfere with market-making and other market
activities in actively traded securities, such as the Barclays Shares and Barclays ADSs. However, because the Barclays Affiliates are affiliated purchasers of the issuer, they may not rely on the actively traded securities exception to do what market makers and brokers for large U.S. issuers are normally allowed to do during distributions by those issuers. Barclays believes that the risk of market manipulation by Barclays Affiliates is limited by: (1) the information barrier policies and procedures that they have in place; (2) the fiduciary duties to which many Barclays Affiliates are subject; (3) the fact that the Market Activities that are the subject of this request for exemptive relief are the ordinary course market activities of the Barclays Affiliates rather than activities commenced or managed in contemplation of the Transaction; (4) the fact that the Transaction is being conducted and trading by Barclays Affiliates in Barclays Shares and Barclays ADSs is subject to and will be conducted in accordance with applicable UK and other laws; and (5) as discussed in gteater detail below, applicable UK law provides important safeguards against the type of risk of abuse that Regulation M was designed to prevent.

U.S. Securities and Exchange Commission -21-
For the foregoing reasons, Barclays asks the Staff to provide an exemption fiom Regulation M that would allow Barclays Affiliates to continue to engage in the activities described above during the Restricted Period.
V. The United Kingdom Market Regulatory Regime
The key legislation and regulation governing market activities and market conduct in the United Kingdom is the Financial Services and Markets Act 2000 (the "FSMA"), the Criminal Justice Act 1993(the "CJA") and the Code of Market Conduct, as well as the EU Market Abuse Directive and the EU Stabilisation and Buybacks Regulation. In addition, companies listed on the UK Official List, such as Barclays, must comply with the relevant obligations under the Listing Rules, and companies admitted to trading on a regulated market in the United Kingdom (which includes the main market of the LSE) must comply with the Disclosure and Transparency Rules of the UK Financial Services Authority (the "m)in order to meet the transparency and disclosure obligations required under the United Kingdom regulatory regime. The principal enforcement body for transparency and compliance in market activities and market conduct is the FSA, although the UK Department for Business, Enterprise and Regulatory Reform has the power to investigate offences under the insider dealing regime and can appoint inspectors to investigate and report on suspected offences. The FSA, in its capacity as the UKLA, is the competent authority for the monitoring and enforcement of the Listing Rules and the Disclosure and Transparency Rules. The handling of price sensitive information in the United Kingdom is governed by the CJA insider dealing regime (which relates to dealing in, encouraging others to deal in and disclosing of price sensitive information in relation to priceaffected securities and imposes criminal sanctions). This regime is supplemented by the market abuse regime under the FSMA (which targets, amongst other things, behavior resulting in the illegitimate manipulation or distortion of a qudifling market and imposes civil liability) and the Disclosure and Transparency Rules (which, amongst other things, require prompt disclosure of inside information to the market, subject to certain limited exceptions). In the United Kingdom, a publicly-traded company may purchase its own shares either through ''market" purchases or "off-market" purchases. A market purchase is a purchase made on a recognized investment exchange, such as the LSE. Broadly any purchase which is not made on a recognized investment exchange is an off-market purchase. Market purchases must be approved by an ordinary resolution of the company (a simple majority of votes at a general meeting), although market practice in the United Kingdom (based on institutional shareholder guidelines) is for listed companies to sanction purchases by way of a special resolution (a 75% majority of votes at a general

U.S. Securities and Exchange Commission -22- meeting). Off-market purchases must be sanctioned by a special resolution of the shareholders. The Listing Rules, the Code of Market Conduct and the EU Buy-back and Stabilisation Regulation (EC No. 227312003 of 22 December 2003), which is substantially annexed to the Code of Market Conduct, also include restrictions on the times and prices at which market purchases may be made. Companies in the United Kingdom whose shares are traded on a regulated market such as the LSE must comply with the vote holder and issuer notification rules under Chapter 5 of the Disclosure and Transparency Rules. The rules require direct and indirect shareholders of issuers whose shares are traded on a regulated market (as well as holders of certain types of financial instrument relating to those shares) to inform the issuer and the FSA of any changes to major holdings in the issuer's shares. In particular, a listed company which acquires its own shares must make public the percentage of voting rights attributable to those shares which it holds in treasury as a result of the transaction as a whole as soon as possible, but in any event not later than four trading days following the acquisition where that percentage reaches, exceeds or falls below the thresholds of 5% or 10% of the voting rights.
VI. Certain Activities of BGFA
BGFA serves as the investment advisor to the ishares Index Funds, which are investment series of the ishares Trust, an open-end management investment company which was organized as a Delaware business trust on December 16,1999, or ishares Inc., a corporation organized under the laws of Maryland on August 3 1,1994. BGFA is a wholly-owned subsidiary of BGI-US, an indirect subsidiary of Barclays. BGI-US, together with its affiliates, is the world's largest manager of institutional investment assets, and BGI-US and BGFA are two of the Asset Managers described above. As of December 3 1,2007, BGI-US and its affiliates, including BGFA, managed, administered or advised assets aggregating in excess of USs2.1 trillion. Each ishares Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of a different benchmark index (each an "Underlvinr! Indexyy). The ishares Index Funds are not managed according to traditional methods of "activeyy investment management, which involve the buying and selling of securities based upon economic, financial, and market analysis and investment discretion. Instead, each ishares Index Fund attempts to approximate the investment performance of an Underlying Index by investing in a portfolio of securities that seeks to replicate the relevant Underlying Index through the use of quantitative analytical procedures. The shares of each ishares Index Fund are listed on a U.S. stock exchange regulated by the Commission under the Exchange Act. The shares of ishares Index Funds are registered under the U.S. Securities Act of 1933, as amended, and the U.S. Investment Company Act of 1940, as amended.

U.S. Securities and Exchange Commission -23-
Each Shares Index Fund issues shares in such fund (the "iSharesY') generally only in exchange for an in-kind deposit of securities by the purchaser, and payment of a specified cash amount that, together with the value of the deposited securities, equals the ishares Index Fund's current net asset value. The in-kind deposit consists of a basket of securities (the "Deuosit Securitiesyy) selected by BGFA to correspond to the mix, price and yield performance of the Underlying Index. All orders to purchase ishares of an ishares Index Fund are placed with the distributor of the ishares Index Fund (the "Distributor") by an "Authorized Partici~ant," each of which is a registered broker-dealer and Depository Trust Company ("my) participant. Purchasers may deliver Deposit Securities that they hold in inventory, may borrow such Deposit Securities for delivery or may acquire Deposit Securities in the secondary market. Neither BGFA nor the respective ishares Index Fund has knowledge or control over how a purchaser of the ishares acquires any Deposit Securities that are delivered to the ishares Index Fund, so long as such securities are delivered in good form. An ishares Index Fund recoups the costs of issuing ishares by imposing a "Transaction Feeyy on investors purchasing or redeeming Shares. The purpose of the Transaction Fee is to impose the costs associated with the purchase and redemption of ishares on those purchasing or redeeming. BGFA has the discretion to permit an Authorized Participant to substitute cash in lieu of depositing one or more Deposit Securities in connection with the issuance of Shares, but when it does so the Authorized Participant is assessed a higher Transaction Fee to offset the increased cost to the respective ishares Index Fund of buying those particular Deposit Securities in lieu of receiving them in-kind. The Distributor transmits all purchase orders to each respective ishares Index Fund. Any order that is not in proper form will be rejected. After an Shares Index Fund has accepted a purchase order and received delivery of the Deposit Securities and any accompanying cash payment, DTC will instruct it to initiate "delivery" of the appropriate number of ishares to the book-entry account specified by the purchaser. The Distributor will furnish a prospectus and a confirmation to those placing purchase orders. BGFA makes available on each business day, prior to the opening of trading on the exchange where the respective hd is listed, a list of the names and required number of units of each Deposit Security to be included in the fund deposit for an ishares Index Fund. BGFA also makes available on a daily basis information about the previous day's in-kind deposit of Deposit Securities and cash. The activities described above involving the creation and issuance by an investment company of shares or units that individually trade on an exchange, but that in large aggregations can be purchased and redeemed with the issuing investment
company, is not novel. Indeed several of the products have been so embraced by investors that they routinely are among the highest volume securities on the exchanges on which they trade. The Commission has in the past ten years considered and approved many such proposals.

U.S. Securities and Exchange Commission -24-
Some of these exchange-traded funds have been trading publicly for years, and neither BGI-US nor BGFA is aware of any abuses associated with them." Barclays is requesting that the Commission clarify that the issuance of ishares fiom the respective ishares Index Funds in exchange for Deposit Securities that are purchased in the United States and which contain Barclays Shares or Barclays ADSs does not constitute, directly or indirectly, a bid for, purchase or attempt to induce any person to bid for or purchase Barclays Shares or Barclays ADSs during the Restricted Period for purposes of Rule 102 of Regulation M. The receipt of Deposit Securities into an ishares Index Fund fiom an Authorized Participant does not entail a separate bid for or purchase of any of the securities contained within the Deposit Securities by a Barclays Affiliate. In addition, an ishares Index Fund will not purchase Deposit Securities in the secondary market to fulfill a purchaser's request to redeem ishares since such securities are available fiom the Deposit Securities that have previously been acquired, including as a result of previous deliveries by Authorized Participants in exchange for the issuance of iShares. Therefore, the act of issuing or redeeming ishares by the Fund cannot be expected to affect the market price of the Deposit Securities, as such transactions merely involve an exchange of Deposit Securities for ishares of equal market value. Moreover, neither BGFA nor the respective ishares Index Fund has control over the occurrence or timing of such transactions, nor any knowledge or control over how a purchaser of the ishares acquires any Deposit Securities that are delivered to the respective ishares Index Fund or whether an investor which redeems its ishares subsequently disposes of the Deposit Securities removed from the respective ishares Index Fund in secondary market trading. To the extent that such transactions are deemed by the Commission to constitute bids for, purchases of or inducements of any person to bid for or purchase Barclays Shares or Barclays ADSs during the Restricted Period for purposes of Rule 102 of Regulation My Barclays requests exemptive relief from Rule 102 of Regulation Mto permit such transactions so long as (i) purchases of Barclays Shares are effected in the ordinary course of business and consistent with the composition of the respective fund's Underlying Index and its overall investment objective and (ii) such purchases are not effected for the purpose of facilitating the Transaction. The Commission has granted exemptive and no-action relief under various Exchange Act rules in connection with various aspects of exchange-traded funds' activities in a line of letters dating back to the early 1990s. In October 2006, the Commission granted class relief fiom Rules 101 and 102 of Regulation M for exchange-traded funds that meet certain criteria. See Class Relief for Exchange Traded Index Funds (October 24,2006). Although neither this
nor previous relief we have identified addresses purchases of securities that compose the fund by issuers of those securities (as opposed to purchases of the shares of the fbnd itself), we cite to these previous letters in order to point out that the Staff and the Commission have previously found that trading activitiesin connectionwith exchange-traded funds tend not to raise the types of concerns about manipulation that Rule 102 of Regulation M seeks to address.

U.S. Securities and Exchange Commission
Nearly all purchases of Deposit Securities would quali8 as basket transactions for purposes of the exemption provided by Rule 101 (b)(6). All such purchases would be made in the ordinary course of business and not to facilitate the Transaction. With few exceptions, each of the approximately 156ishares Index Funds contains 20 or more securities (and none of the ishares Index Funds that contains fewer than 20 securities holds Barclays Shares or Barclays ADSS).'~ Finally, Barclays Shares and Barclays ADSs and related securities do not comprise more than 5% of the value of any ishares Index Fund. However, because BGFA is an affiliated purchaser of the issuer, it may not rely on the exception for basket transactions to do what other fund managers are normally allowed to do during distributions by issuers whose securities are inchded in their funds. In view of the predictable lack of any meaningful potential for the issuance and the secondary market trading of ishares to affect significantly the price of Barclays Shares, application of Rule 102 of Regulation M to BGFA or a broker-dealer or other person who may be participating in a distribution of ishares from an ishares Index Fund in exchange for Deposit Securities is unnecessary and inappropriate, and could unnecessarily hinder broker-dealers or other persons in their creation and redemption activities, in their day-to-day ordinary business of buying and selling securities and ishares and thus undermine the potential beneficial market effect of ishare trading.
VII. Relief Requested
As discussed above, Barclays is seeking exemptive relief from the application of Rule 102 of Regulation M to permit Barclays Affiliates to continue to engage in the Market Activities described in Section I1 of this letter during the Restricted Period. In addition, Barclays is requesting that the Commission clarifythat the issuance of ishares ftom the respective ishares Index Funds in exchange for Deposit Securities that are purchased in the United States and which contain Barclays Shares does not contravene Rule 102 of Regulation M, or in the alternative to provide exemptive relief for such activities. All of these activities would be conducted in accordance with applicable local law and in the ordinary course of business in the UK and other non-U.S. markets (except that certain derivatives market-making and hedging, asset management, unsolicited brokerage, stock borrowing and lending, taking collateral and purchases of Deposit Securities in connection with the issuance of iShares, will also be conducted in the ordinary course of business in the United States as discussed above). IS The ishares Index Funds which contain fewer than 20 securities are: the ishares Lehman 10-20 Yea. Treasury Bond Fund, the ishares Lehman20+ Year Treasury Bond Fund, the ishares Lehman 3-7 Year Treasury Bond Fund, the ishares Lehman 7-10 Year Treasury Bond Fund, the ishares LehrnanMBS Fixed-Rate Bond Fund and the ishares Lehman Short Treasury Bond Fund

U.S. Securities and Exchange Commission -26-
As a condition to the relief being requested, Barclays would undertake to include disclosure in the prospectus included in the Form F-3 that will be distributed to Barclays shareholders located in the United States and holders of Barclays ADSs worldwide. The disclosure would be substantially similar to the following:
Since the announcement of the Transaction, certain Barclays Affiliates have engaged and intend to continue to engage in various dealing and brokerage activities involving Barclays Shares. Among other things, Barclays Affiliates (1) have made and intend to continue to make a market, from time to time, in derivatives (such as options, warrants and other instruments) on Barclays Shares by purchasing and selling derivatives on Barclays Shares for their own accounts; (2) have engaged and intend to continue to engage in dealings in Barclays Shares for their accounts and the accounts of customers for the purpose of hedging their positions established in connection with certain derivatives activities (such as options, warrants and other instruments) relating to Barclays Shares entered into by Barclays Affiliates and their customers; (3) have engaged and intend to continue to engage in transactions in Barclays Shares as trustees andlor personal representatives of trusts and estates; (4) have marketed and sold and intend to continue to market and sell to customers funds which include Barclays Shares; (5) have provided and intend to continue to provide to customers investment advice and financial planning guidance which may include information about Barclays Shares; and (6) have purchased and intend to continue to purchase Barclays Shares on behalf of participants in employee share incentive plans. All of these activities have occurred and are expected to continue to occur iR the United Kingdom and elsewhere outside the United States. Separately, certain Barclays Affiliates (1) have made and intend to continue to make a market, from time to time, in derivatives (such as options, warrants and other instnunents) relating to U.S. indices in which Barclays Shares or Barclays ADSs are a component, by purchasing and selling such derivatives for their own accounts; (2) have engaged and intend to continue to engage in dealings in U.S. indices in which Barclays Shares or Barclays ADSs are a component for their accounts and the accounts of customers for the purpose of hedging their positions established in connection with

U.S. Securities and Exchange Commission -27- derivatives activities entered into by Barclays Affiliates and their customers as described in the preceding clause (1); (3) have purchased and sold, and intend to continue to purchase and sell, Barclays Shares and Barclays ADSs as part of their ordinary asset management activities; (4) have effected and intend to continue to effect unsolicited brokerage transactions in Barclays Shares and Barclays ADSs with their customers; (5) have provided and intend to continue to provide prime brokerage services, including rehypothecation of securities, to clients, which may involve taking legal and beneficial ownership of clients' Barclays Shares and Barclays ADSs; and (6) have engaged in and may continue to engage in the lending of Barclays Shares and Barclays ADSs, as well as accepting Barclays Shares and Barclays ADSs as collateral for loans. These activities have occurred and are expected to continue to occur both outside and inside the United States. BGFA has engaged and may continue to engage in the issue of ishares from certain ishares Index Funds in exchange for Deposit Securities that are purchased in the United States and which contain Barclays Shares or Barclays ADSs. As a further condition to the relief being requested, Barclays will undertake to keep records ("Records") of the date and time at which any Barclays Shares are purchased or sold, the market in which the purchase or sale is effected, the amount of Barclays Shares purchased or sold and the price of purchase or sale, for each purchase or sale of Barclays Shares that Barclays Affiliates make during the Restricted Period (this information will not include any client-specific data, the disclosure of which may be restricted under local law). Barclays will maintain the Records for a period of two years following the end of the Restricted Period. Upon the written request of the Director of the Division of Market Regulation of the Commission, Barclays will make the relevant records available at the Commission's offices in Washington, D.C. In connection with the relief requested by Barclays in this letter, please note that the Commission granted substantially identical relief to Barclays under the exemptive letter of August 7,2007, in connection with Barclays unconsummated offer to acquire of all the outstanding shares of ABN AMRO Holding N.V. Please note as well that the Commission has granted similar exemptive relief from Regulation M to UBS AG under the exemptive letter of April 22,2008; to The Royal Bank of Scotland Group plc and ABN AMRO Holding N.V. under the exemptive letters of April 21,2008 and July 23,2007; to ABN AMRO Holding N.V. under the exemptive letter of August 7,2007; to Banco Bilbao Vizcaya Argentaria, S.A. under the exemptive letter dated June 25,2007; to Allianz SE under the exemptive letters dated March 23,2007 and April 10,2003; to

U.S. Securities and Exchange Commission -28-
Banco Intesa S.p.A. under the exemptive letter dated November 1,2006; to Sanpaolo IMI S.p.A. under the exemptive letter dated November 1,2006; to Banco Santander Central Hispano, S.A. under the exemptive letter dated September 10,2004; to Allianz AG under the exemptive letter of April 10,2003 and to UBS AG under the exemptive letter dated September 22,2000.

U.S. Securities and Exchange Commission -29-
If you have any questions or require any additional information, please contact the undersigned in London at 011 (44) 20 7959 8570 or Alan P.W. Konevsky in London at 011 (44) 20 7959 8509. Sincerely yours, George H. White cc: Joan Collopy Bradley Gude (Securities and Exchange Commission) Judith Shepherd

Nicola E. Bush

(Barclays PLC)

H. Rodgin Cohen

Alan P.W. Konevsky

Jessica L. King

(Sullivan & Cromwell LLP)

SULLIVAN & CROMWELL LLP A LIMITEDwlLln PARTNERSHIP TELEPHONE: +44(0120-7959-8900

FACSIMILE: t44(0120-7959-8950

WWWsULlumMm

PRANKNRT PARIS
LOSANGELES NEWYDRK .PAL0 ALTO - WASHINGTON, D.C.
BKIJINO .HONGKONO .TOKYO
MELBOVRNF. SYDNEY
June 25,2008
BY Hand and E-mail
Division of Trading and Markets,

Securities and Exchange Commission,

100F Street, N.E.,

Washington, D.C. 20549,

United States of America.

Attention: Mr. James A. Brigagliano, Associate Director Re: Barclays PLC: Request for Exemptive Relief fiom Rule 102 of RegulationM Dear Mr. Brigagliano:
We refer to our letter to you of June 16,2008 (the "June 16 Letter"), related to the request for relief from Rule 102 of Regulation M on behalf of Barclays PLC ("Barcla~s"). Capitalized terms used, but not defined in, this letter shall have the respective meanings ascribed to them in the June 16 Letter. At your request, we are writing to advise you that, in connection with the Firm Placing and the Conditional Placing and the Open Offer announced by Barclays today, there will be:
approximately £0.5 billion raised through the Firm Placing of 168,918,918 Barclays Shares at a price of 296 pence per share; and approximately £4.0 billion raised throughthe Conditional Placing and the Open Offer of 1,407,426,864 Barclays Shares at a price of 282 pence per share. Upon completion of the Firm Placing and the Conditional Placing and the Open Offer, new Barclays Shares issued in connection therewith will represent Suihn 8 Cromwell UP is a realsiered WWrty partnership estabrii under the tnvs of the SMe of NEWYork

The perwnal Habilii of our F~IKIPI b Bmited to lhe extent provided in sueh W.Additional )n(ormationis availabk, upon requePt or at www.sulRrom.com.

A Ust of the partnars' namesand pm(~bnaIquai-is available for Ins- at thsabove address.

An partners are either registeredforeign lawyers in Engtand and Wales w wWors. Regulated by the Solidton RsgulatiDn Authom.

U.S. Securities and Exchange Commission -2- approximately 19.4% of the 8,144,337,814 Barclays Shares which are expected to be in issue following the completion of the Firm Placing and the Conditional Placing and the Open Offer. If you have any questions or require any additional information, please contact the undersigned in London at 01 1 (44) 20 7959 8570 or Alan P.W. Konevsky in London at 011 (44) 20 7959 8509. George H. White cc: Joan Collopy Bradley Gude Elizabeth Sandoe (Securities and Exchange Commission) Judith Shepherd

Nicola E. Bush

Eleanor Crossley

(Barclays PLC)

H. Rodgin Cohen

Alan P.W. Konevsky

Jessica L. King

(Sullivan & Cromwell LLP)