The new European Markets Infrastructure Regulation (EMIR) will introduce significant changes to the over-the-counter (OTC) derivatives market by mandating central clearing for contracts with a certain degree of standardization and imposing risk mitigation standards for non-centrally cleared contracts.
The clearing obligation will apply to both financial counterparties and non-financial counterparties who meet certain criteria, and will apply broadly to OTC derivative contracts, including commodity, interest rate, credit, equity, and foreign exchange derivatives.
Changes to clearing procedures
In order to comply with the new regulations, NASDAQ OMX Clearing will implement a number of changes to existing clearing processes and procedures for Commodity members. These changes apply to both exchange traded and OTC-cleared transactions and positions. The changes will all take place during 2013 and impact mainly on the following areas:
• New Collateral Management Service
• Introduction of securities as approved collateral
• New Settlement Procedures
• Changes to Bank Guarantees
• Changes to the Default Fund
A comprehensive information package relating to the above is sent by email directly to members that are subject to the Trading and Clearing rules of NASDAQ OMX Commodities on December 3, 2012. Members are encouraged to contact their key account managers directly if they have any questions.
Please also refer to our website for more and updated information http://nasdaqomx.com/Europeanclearing
Background
EMIR entered into force on August 16, 2012. However, the implementation will be gradual.
NASDAQ OMX Clearing will receive a new clearing license, in accordance with the new EMIR requirements, during the second half of 2013. Independent of this process, NASDAQ OMX Clearing is already prepared to clear all relevant products that are expected to be mandated for clearing and will continue to expand the product offering. With the new regulations in force, clearing via NASDAQ OMX Clearing will provide capital and operational efficiencies that are not available in the un-cleared market.
More detailed information will be provided throughout the transition process.
Please contact NASDAQ OMX for further information:
Knut Rabbe, Director Sales, phone +47 6752 8032/+47 9322 0800, knut.rabbe@nasdaqomx.com
Media contact:
Sara Aadnesen, Director Corporate Communication, phone +47 6752 8080/+47 9060 0759, sara.aadnesen@nasdaqomx.com
About NASDAQ OMX
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels economies and provides transformative technologies for the entire lifecycle of a trade - from risk management to trade to surveillance to clearing. In the US and Europe, we own and operate 24 markets, 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed income, derivatives, commodities, futures and structured products. Able to process more than 1 million messages per second at sub-40 microsecond speeds with 99.999% uptime, our technology drives more than 70 marketplaces in 50 developed and emerging countries into the future, powering 1 in 10 of the world’s securities transactions. Our award-winning data products and worldwide indexes are the benchmarks in the financial industry. Home to approximately 3,400 listed companies worth $5.1 trillion in market cap whose innovations shape our world, we give the ideas of tomorrow access to capital today. Welcome to where the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more, visit www.nasdaqomx.com. Follow us on Facebook (http://www.facebook.com/NASDAQ) and Twitter (http://www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
NASDAQ OMX's 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.
This document is being directed solely at and may only be communicated to persons: (i) who have professional experience in matters relating to investments as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") or, (ii) who are high net worth companies, unincorporated associations and trustees of high value trusts within Article 49(2)(a)-(d) of the FPO, or (iii) to whom it may otherwise be lawful to distribute it (all such persons together being referred to as "Relevant Persons"). Any investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.