Approved Settlement Banks
|The Bank of New York Mellon||EUR, GBP, USD|
|Barclays Bank PLC||EUR, GBP, USD|
|Danske Bank||SEK||NOK, EUR||DKK, EUR||EUR||GBP|
|SEB||SEK, EUR||NOK, EUR||DKK||EUR|
* = Only applicable for members trading commodities products
Requirements for Approved Settlement Banks
Members clearing with Nasdaq Clearing AB (“Nasdaq Clearing”) are required to engage an approved settlement bank for purposes of managing daily cash settlement. Daily cash settlement is done through direct debit and direct credit instructions issued by Nasdaq Clearing and executed through standing instructions between a member, its bank and Nasdaq Clearing.
This information describes the main requirements for a bank acting as an approved settlement bank for Nasdaq Clearing.
Further requirements may apply as stated in the services agreement entered into between Nasdaq Clearing and an approved settlement bank.
An approved settlement bank shall have a credit rating of “A-“ or higher in accordance with Standard & Poor’s credit rating system, or a credit rating of “A3” or higher in accordance with Moody’s credit rating system.
A bank can be approved for one or several of the currencies applicable for settlement on Nasdaq Clearing markets. The currencies for which a bank is approved is stipulated in the service license agreement.
An approved settlement bank shall have a service agreement with Nasdaq Clearing specifying the terms and specifications of the cash settlement services provided by the settlement bank.
A bank can be approved as settlement bank for one or several of the currencies applicable for settlement on Nasdaq Clearing’s markets. The currencies for which a bank is approved is stipulated in the services agreement between the settlement bank and Nasdaq Clearing.
Connection to Central Bank/TARGET2
For payments in SEK and DKK the settlement bank must be connected to and be able to execute payments through the currency’s respective central bank, the Swedish Riksbank for SEK and the Danish Nationalbank for DKK. For payments in EUR the settlement bank must be connected and be able to execute payments through the TARGET2 settlement system.
For each currency where it is approved, the settlement bank shall be able to execute payments on each day designated as a settlement day in accordance with contract specifications in the Rules and Regulations for Nasdaq Derivatives Markets and Nasdaq Commodities Markets.
An approved settlement bank shall be able to send and receive payment instructions and send payment confirmations and end-of-day statements through SWIFT Net according to the agreed specifications. All transactions for all message types shall be sent over SWIFT Net.