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 Officer of NASDAQ OMX, 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.
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