NASDAQ OMX Derivatives Markets (NASDAQ OMX DM) is making a number of changes to the list of eligible collateral (Appendix 12 and 12a) to NASDAQ OMX Derivatives Markets Rules and Regulations). Further changes will be made in connection to the implementation of NASDAQ OMX DM’s proprietary Collateral Management solution (CMS) in March 2013. NASDAQ OMX DM will inform its members and customers about these changes in February 2013.
The below changes and clarifications to appendix 12 and 12a to NASDAQ OMX Derivatives Markets Rules and Regulations will come in to force on 2 January 2013.
Clarifications:
- All securities accepted as collateral shall have daily prices available via Reuters, Bloomberg, SIX or another information distributor approved by NOMX DM. If daily prices are missing, the security shall be valued at zero.
- NASDAQ OMX DM does not allow as collateral securities or bank guarantees issued by the member/customer itself, or by a company within the same group of companies as the member/customer.
Changes:
- Only government bills and fixed rate, unstructured and dated government bonds issued by the governments of; Sweden, Denmark, Finland, Norway, Germany, The Netherlands, Austria, France, United Kingdom and the United States are accepted as collateral. The government bills and fixed rate bonds must be denominated in the local currency of the issuing country.
- Only index linked bonds issued by the government of Sweden and denominated in SEK are accepted as collateral.
- Norwegian government bonds and bills can be posted up to an unlimited amount.
- Only Swedish and Danish fixed rate and unstructured covered bonds issued by eligible institutions with a rating of AAA (S&P) and/or Aaa (Moody’s) are accepted as collateral. Swedish issuers of eligible covered bonds shall fulfill the criteria of “Lag (2003:1223) om utgivning av säkerställda obligationer”. Danish issuers of eligible covered bonds shall fulfill the criteria of “the Danish Business Act (Consolidating Act no. 705 of 25 June 2012)”. Swedish Covered Bonds shall be denominated in SEK and Danish Covered Bonds shall be denominated in DKK.
- Swedish, Danish and Finnish bank bonds will no longer be accepted as collateral.
- Only fixed rate and unstructured Kommuninvest bonds denominated in SEK are accepted as collateral.
- Only shares included in the following indices are eligible as collateral; OMXS30, KFX (OMXC20), HEX25 (OMXH25) and OBX (OBX25). The maximum amount that can be posted per issuer (per member/customer) is 200 MSEK, 180 MDKK, 180 MNOK or 20 MEUR as specified in Appendix 12. Mid cap shares and large cap shares not included in the indices mentioned are no longer eligible as collateral. This will make Appendix 12a obsolete.
- Each member/customer can only post 200 million SEK per ETF ISIN (previously 300 million SEK)
Attached documents:
Appendix 12 Collateral list - January 2, 2013
For further information concerning this exchange notice please contact Risk Management European Financial Products, telephone +46 8 405 70 88, or riskmanagement@nasdaqomx.com
NASDAQ OMX Derivatives Markets
Risk Management European Financial Products
Legal disclaimer: This Exchange Notice is provided only as notification to NASDAQ OMX Derivatives Markets participants and other contracting parties of NASDAQ OMX Derivatives Markets and is not intended for any other purposes. Prior to taking any action based on the above information, the Rules and Regulations of NASDAQ OMX Derivatives Markets (“Rules”) should be fully understood. NASDAQ OMX Derivatives Markets is not responsible for any misinterpretation of the information provided in this Exchange Notice. Subject to the Rules, NASDAQ OMX Derivatives Markets assumes no liability for the accuracy or completeness of the contained information or for any damages arising from actions taken on the basis of this Exchange Notice.
