IDCG Gains CFTC Approval to Clear Interest Rate Swaps
NEW YORK, Dec. 22, 2008 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ) announced today the completion of its 80% equity investment in
the International Derivatives Clearing Group (IDCG). Effective today, IDCG will
become an independently operated subsidiary of NASDAQ OMX. Additionally, today
the Commodity Futures Trading Commission (CFTC) granted IDCG approval to clear
OTC Interest Rate Swap (IRS) Futures Contracts and other Fixed Income
derivatives contracts.
With CFTC approval, IDCG plans to launch central counterparty clearing for IRS
products. IDCG's subsidiary, International Derivatives Clearinghouse, LLC, will
be the clearinghouse with U.S. regulatory oversight using NASDAQ OMX SECUR XT
for clearing. The Philadelphia Board of Trade (PBOT), a recently acquired
subsidiary of NASDAQ OMX, will be serving as the designated contract market
(DCM) for the Interest Rate Swap Products using NASDAQ OMX Click XT technology
for matching.
Bob Greifeld, Chief Executive of Officer said, "NASDAQ OMX has been an early
advocate for reform of the Over-the-Counter market where bilateral contracts
have contributed to the current credit crisis. It is our belief that basic
market mechanisms such as central counterparty clearing systems can reduce
credit risk while increasing the efficient use of capital."
"Our decision to enter this market was influenced by the idea of creating an
innovative futures contract that mirrors an OTC IRS market that is over $300
trillion in size. We would also like to commend the CFTC for their leadership
throughout this approval process," Greifeld added.
Chris Concannon, Executive Vice President of NASDAQ OMX said, "The completion
of our investment today furthers NASDAQ OMX's entrance into the derivatives
market while leveraging our assets from both the OMX Group and PHLX
acquisition. By partnering with IDCG we are creating a highly efficient market
to trade, clear and settle U.S. Dollar interest rate swap futures. The dynamic
and experienced IDCG team has successfully built a timely and truly unique
product offering."
IDCG's management team includes Vincent Viola as Chairman, Chris Edmonds, who
serves as Chief Executive Officer, and John Shay, who serves as Chief Marketing
Officer. IDCG plans to launch the platform in the near future.
About the International Derivatives Clearing Group
The International Derivatives Clearing Group (IDCG) is an independently
operated subsidiary of NASDAQ OMX and will be serving as the designated
contract market (DCM) for the Interest Rate Swap Products using NASDAQ OMX
Click XT technology for matching. IDCG's subsidiary, International Derivatives
Clearinghouse, LLC, will be the clearinghouse with U.S. regulatory oversight
using NASDAQ OMX SECUR XT for clearing.
About the NASDAQ OMX Group
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 http://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 Market and NASDAQ OMX Group's other 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 Group's control. These factors include, but
are not limited to factors detailed in NASDAQ OMX Group'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.
NDAQG
CONTACT: NASDAQ OMX
Media Contact:
Silvia Davi
646-441-5014
silvia.davi@nasdaqomx.com
Investor Relations:
Vincent Palmiere
301-978-5242
vincent.palmiere@nasdaqomx.com
IDCG
Media Contact:
Alan Sobba
646-867-2535
alan.sobba.@idcg.com
NASDAQ OMX Completes Investment in International Derivatives Clearing Group
| Source: The NASDAQ OMX Group, Inc.