LONDON, Jan. 29, 2009 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced the closing of its acquisition of a 22 percent stake in European Multilateral Clearing Facility N.V. (EMCF). In October 2008, NASDAQ OMX agreed to purchase a stake in this leading European clearing house from Fortis Bank Nederland (Holding) N.V. with the objective of reinforcing EMCF's position as the leading clearing house in Europe. As a result of the transaction, NASDAQ OMX will have two representatives on the Supervisory Board of EMCF.
NASDAQ OMX has also signed an agreement with EMCF to use their services for Central Counterparty (CCP) for all Nordic transactions. The provision of CCP services is subject to regulatory approval. NASDAQ OMX's decision to introduce CCP services in the Nordic markets and its strategic investment in EMCF is part of a broader commitment to reduce clearing and settlement costs for its customers in Europe. In addition, through EMCF, NASDAQ OMX will allow transactions in the Nordic markets to be available for netting with transactions that are executed on MTFs and cleared through EMCF.
"Our investment in EMCF, and its commitment to provide cross netting between the Nordic markets and MTFs in London is a reflection of our drive to deliver clearing efficiencies to these markets," said Chris Concannon, Executive Vice President, NASDAQ OMX Transaction Services.
He continued, "This investment also reinforces our desire to support interoperability across Europe. It is a critical and needed structural change for the European markets, one that will increase competition and lower investor costs."
Jan Bart de Boer, Chairman of the Supervisory Board of EMCF, said, "We are delighted with NASDAQ OMX as a partner in EMCF. We share the same vision on post-trading. EMCF has proven that in post-trading it is competition, not consolidation, that delivers better and cheaper services."
Cross netting of trades provides significant cost savings to investors by eliminating the need to pay a clearing fee on both the opening and the closing of a transaction. Interoperability between clearing houses allows markets to interact with multiple clearing houses to clear and settle their trades, increasing competition and lowering costs for investors.
"NASDAQ OMX is taking the lead in implementing central counterparty clearing in the Nordics and we are leveraging that initiative to support clearing efficiencies in Europe," said Hans-Ole Jochumsen, Executive Vice President, NASDAQ OMX Transaction Services Nordic. "It is now time to turn the focus towards the post-trading part of the transaction, clearing and settlement, where there are great efficiencies to gain."
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 3,800 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, 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 strategic initiatives 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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