Stockholm, October 4, 2011 – NASDAQ OMX Nordic, part of The NASDAQ OMX Group Inc. (NASDAQ:NDAQ), today announces its intention to introduce competitive Central Counterparty (CCP) clearing by end of April 2012* in cooperation with EMCF, EuroCCP and SIX x-clear. The April 2012 timeline was established in consultation with NASDAQ OMX’s trading members. Interoperability will allow members at NASDAQ OMX Nordic exchanges to choose between multiple clearing houses to clear and settle their trades.
NASDAQ OMX Nordic implemented CCP clearing on its markets in Stockholm, Helsinki and Copenhagen in the autumn of 2009, and was then the first European exchange to announce its intent to introduce a competitive clearing model. Due to regulatory issues related to interoperability between clearing houses, the process was delayed. A solution on interoperability proposed by the involved clearing houses has satisfied the CCPs’ regulators, allowing NASDAQ OMX Nordic to move forward with its introduction on competitive clearing.
Hans-Ole Jochumsen, President of NASDAQ OMX Nordic said: “NASDAQ OMX early declared our intent to pursue a competitive clearing model, and with a regulatory consensus now in place, we are eager to move forward. We are confident that a competitive CCP model will act to drive liquidity and lower investor costs, thus benefiting our clients and the European capital market as a whole.”
Petri Simberg, Chairman of the Nordic Securities Association commented: “Our members are positive and committed to the introduction of a competitive and interoperable CCP model in the Nordics. A solution with a truly competitive choice of clearers will increase the attractiveness of the Nordic equities market and result in liquidity and cross netting advantages that will benefit our members.”
CCP clearing on the Nordic markets encompasses large cap companies listed in Stockholm and Copenhagen, and large- and mid cap companies listed in Helsinki. Norwegian shares traded in Stockholm and ETFs listed in Stockholm and Helsinki are also CCP cleared.
Central Counterparty Clearing and Interoperability
Central counterparty clearing involves the legal transfer of obligations to a central counterparty, which becomes the buyer to the seller and the seller to the buyer. With the CCP counterparty risk - or the risk that one party to a trade suffers losses because the other party cannot fulfill its obligations - is mitigated.
Interoperability between clearing houses allows market participants to choose the CCP they prefer to use, thus increasing competition. CCP interoperability also enables cross netting of trades for firms that use the same CCP for transactions executed on different trading venues, which enables cost savings from fewer settlements, and simpler operations.
*) The availability of competitive CCP services at NASDAQ OMX markets by April 2012 is conditional of necessary regulatory consent or approvals from the regulators of NASDAQ OMX Nordic exchanges and the involved CCP parties.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. delivers trading, exchange technology and public company services across six continents, with more than 3,500 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, visithttp://www.nasdaqomx.com. *Please follow NASDAQ OMX on Facebook (http://www.facebook.com/nasdaqomx) and Twitter (http://www.twitter.com/nasdaqomx).
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.
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