NASDAQ OMX and Nordic Securities Association Agree On the Implementation of Central Counterparty Clearing
STOCKHOLM, Sweden, Jan 26, 2009 (GlobeNewswire via COMTEX News Network) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) together with the Securities Dealers Associations in Denmark and Sweden and the Federation of Finnish Financial Services are pleased to announce a joint timetable for introducing Central Counterparty (CCP) on the NASDAQ OMX exchanges in Copenhagen, Helsinki and Stockholm with voluntary CCP from February 2009 and full CCP from October 9, 2009. Implementation of voluntary and full CCP is subject to approval or consent from the Financial Services Authorities (FSAs).
In October 2008, NASDAQ OMX announced its intention to introduce CCP in the Nordic region in 2009. Since then, NASDAQ OMX and the Securities Dealers Associations in Denmark and Sweden and the Federation of Finnish Financial Services have outlined detailed plans on the CCP implementation.
"First of all, the implementation of CCP fulfills a more insistent need of reducing counterparty risks. Secondly, a CCP ensures that the Nordic market is keeping up with international standards," says the chair of the Nordic Securities Association and of the Danish Securities Dealers Association, Steen Blaafalk and continues: "We are pleased to see a significant commitment among the market participants and NASDAQ OMX to find the right solution for the Nordic markets which comprises a multiple and therefore competitive CCP solution."
"We have designed the CCP solution in the Nordic region together with our customers, and we are pleased to jointly announce the concept and timeline for CCP. This introduction will bring multiple benefits to our customers and to the Nordic financial markets by significantly reducing counterparty risk. Most European markets today are centrally cleared and implementation of CCP in the region is fundamental to future competitiveness of the Nordic markets. We are delighted to be able to offer voluntary CCP clearing at competitive rates beginning in February 2009," said Hans-Ole Jochumsen, Executive Vice President NASDAQ OMX.
The CCP solution means that for each and every trade the CCP becomes the counterparty to both the buying party and the selling party; the CCP enters into the trade as the buyer to the seller, and as the seller to the buyer. In this way, CCP reduces counterparty risk, which is the risk that one party to a trade suffers losses because the other party cannot fulfill its obligations.
The common solution will operate as follows:
-- NASDAQ OMX has appointed European Multilateral Clearing Facility (EMCF) to operate as CCP on the Nordic equity markets from the time of launch. -- NASDAQ OMX will seek an additional CCP and appoint any requesting CCP that fulfills the minimum requirements for becoming a CCP on the Nordic markets without delay. -- NASDAQ OMX is committed to working for interoperability effective from launch. -- The Nordic customization initiative as well as the plan for a Nordic clearing fund have been terminated. -- Netting with other market places will be possible. -- Instruments cleared by CCP from October shall be decided in cooperation with the exchange members. -- The appointed CCPs must be account holders with the central banks and must be direct members of the central securities depositories (CSDs). -- A Nordic Steering Committee shall manage the project until its implementation. Members of the committee are representatives from NASDAQ OMX, the SDAs and the CSDs. -- A CCP Advisory Board shall be formed effective from the implementation. Members will be exchange members, the three associations and NASDAQ OMX. Appointed CCPs can participate by invitation.
About the Nordic Securities Association
The "Nordic Securities Association" (NSA) comprises the Danish Securities Dealers Association, the Federation of Finnish Financial Services, the Norwegian Securities Dealers Association and the Swedish Securities Dealers Association. In this context, the Norwegian Securities Dealers Association is not a part of the announcement.
NSA formalises a long standing cooperation between the Associations. Through the Nordic Securities Association, the Associations are strengthening their cooperation in order to enhance the common voice, considering the important changes in the securities market infrastructure and the global review of the financial regulatory system.
About The NASDAQ OMX Group, Inc.
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 over 3,900 listed companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; NASDAQ OMX Nordic, NASDAQ OMX Baltic, including First North; and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX Group 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 Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.
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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SOURCE: The NASDAQ OMX Group, Inc.
NASDAQ OMX Group, Inc. Media Contacts: Anna Rasin, AVP Corporate Communications Nordics +46(8)405 66 12 email@example.com Nordic Securities Association Steen Blaafalk, Danske Bank +45 4514 6360 firstname.lastname@example.org
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