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NASDAQ OMX Nordic to introduce competitive CCP clearing

First Published 4th October 2011

NASDAQ OMX targets April 2012 timeline for competitive Central Counterparty clearing in the Nordics

Hans-Ole Jochumsen, President, NASDAQ OMX Nordic

Hans-Ole Jochumsen, President, NASDAQ OMX Nordic

"We are confident that a competitive CCP model will act to drive liquidity and lower investor costs."

NASDAQ OMX Nordic, part of The NASDAQ OMX Group Inc. (NASDAQ:NDAQ), has announced 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.