Subject to discussions with regulatory bodies NASDAQ OMX Commodities intends to amend how trades executed outside the Electronic order book are reported to the Exchange/ Clearinghouse. Effective date for implementation is December 2 2013.
The amendment applies to the following products:
• Nordic Power
• German Power
• Dutch Power
• Electricity Certificates
• UK Gas
• UK Power
Minor amendments also apply to the Freight and Fuel Oil products that are subject to the existing Block Trade Facility.
The existing NASDAQ OMX OTC Transaction is being terminated and replaced with NASDAQ OMX Block Transactions and NASDAQ OMX EFS/EFP (Exchange of Future for Swap/Exchange of Future for Physical) Transaction. The Block Transaction and EFS/EFP Transactions are reported to the Exchange (NASDAQ OMX Oslo ASA or NASDAQ OMX Stockholm AB) and regulated by the Trading Rules of NASDAQ OMX Oslo and Exchange Rules of NASDAQ OMX Stockholm. Subject to the Block Transaction or EFS/EFP Transaction meeting relevant registration criteria, the Exchange will forward the transaction to the Clearinghouse for clearing. The rulebook of NASDAQ OMX Commodities and Derivatives Markets respectively, will be updated to reflect the new trade reporting transaction types.
Block Transactions or EFS/EFP Transactions can be reported by Exchange Members (including Non-Clearing Members and Block Broker Members). Existing OTC Brokers must enter into a Block Broker membership with the Exchange in order to be able to continue to report trades on behalf of clients. A complete Block Broker membership application must be received no later than November 8 in order for Block Broker Members to be able to report transactions from December 2 2013. The existing OTC Broker agreement will be terminated end of business November 29 2013.
All Clearing Members that use a Block Broker will need to have a Broker Appointment Form in place. Existing Broker Appointment arrangements will by default be transferred (technically and legally) and applicable for Block Transactions and EFS/EFP Transactions assuming the appointed Broker becomes an approved Block Broker Member. Members who want to amend the existing Broker Appointment Form shall notify NASDAQ OMX in writing no later than November 8.
From a technical perspective the existing trade reporting types used when reporting a trade will remain, however re-classified as Block Transaction or EFS/EFP Transactions. Each member is responsible to make sure it understands which trade reporting type that shall be used when reporting a Block Transaction or an EFS/EFP Transaction.
Block Transactions and EFS/EFP Transactions are considered as Exchange Transactions and not OTC transactions under the new European Markets Infrastructure Regulation (EMIR).
More information regarding the upcoming trade reporting procedures can be found in the attached Trade Reporting Service Description.
For further information, please contact NASDAQ OMX Commodities:
Georg Aasen, Vice President Nordic Power Market, phone +47 6752 8076
Mari Borgen, Director Products and Market, phone +47 6710 8515
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, firstname.lastname@example.org
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 U.S. and Europe, we own and operate 26 markets including 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-55 microsecond average speeds with 99.99% 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 3,300 listed companies worth $6 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.
NOS Clearing ASA is the leading clearing house for the freight market and a specialist clearing provider to the commodities markets. The company is wholly owned by the NASDAQ OMX Group Inc. The clearinghouse, which is situated in Oslo, has more than 300 members.
NASDAQ OMX Clearing AB 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.
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