LYSAKER, Norway, April 28, 2010 (GLOBE NEWSWIRE) -- NASDAQ OMX Commodities today successfully introduced Inter Commodity Spread Credit (ICSC). As a result of this, NASDAQ OMX Stockholm's clearing procedures have been updated.
Inter Commodity Spread Credit has been introduced to meet members' growing need for margining efficiencies. The purpose of ICSC is to enable collateral benefits to members by giving credit to off-set positions in products with sustained price correlation when calculating margins.
- "The new ICSC methodology aims at reducing the size of margin calls for members pooling their positions in price-correlated instruments with the clearinghouse, says Geir Reigstad, Senior Vice President of NASDAQ OMX Commodities. "Hence, the cost of capital could be significantly reduced for members who decide to maximize the benefit from this innovative solution," he elaborates.
ICSC will offer margin benefits both for products from the same product series (e.g. Nordic power v. German power) and for products from separate product series (e.g. Nordic power v. EUA allowances). ICSC will be implemented within the existing and SPAN®(1) margin model, optimizing the daily margin call for clearing members.
As an example, a member with risk intervals as of April 19, 2010, with offsetting positions in Nordic power e.g. ENOQ3-11 and German power e.g. EDEBLQ3-11, could have had a margin reduction of up to 30 percent, compared to a situation without ICSC.
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for offerings related to commodities within NASDAQ OMX Group, Inc and is not a legal entity. NASDAQ OMX Commodities provides access to the world's largest power derivatives exchange and one of Europe's largest carbon markets, through Nord Pool ASA. NASDAQ OMX Commodities also provides clearing services through NASDAQ OMX Stockholm AB and its Norwegian branch NASDAQ OMX Oslo, acting as an authorized clearinghouse. N2EX is the brand name for NASDAQ OMX Commodities' and Nord Pool Spot AS offering in the UK power market and NASDAQ OMX Stockholm AB is the authorized clearinghouse. NASDAQ OMX Commodities has more than 385 members from 22 countries covering a wide range of energy producers, consumers and financial institutions. For more information about NASDAQ OMX Commodities, visit www.nordpool.com and www.nasdaqomx.com/Commodities
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter (http://www.twitter.com/nasdaqomx).
NASDAQ OMX's Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX's products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
(1) "SPAN is a registered trademark of Chicago Mercantile Exchange Inc., used herein under license. Chicago Mercantile Exchange Inc. assumes no liability in connection with the use of SPAN by any person or entity."
CONTACT: NASDAQ OMX Commodities Media contact: Thomas Skalnes + 47 6752 8080 + 47 9340 7300 email@example.com
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