NASDAQ OMX Clearing (the Clearinghouse) will introduce Margin Concentration Limits for Commodity Derivatives Market. Margin Concentration Limits are already in use on the Fixed Income and Equity Derivatives Markets. The limits will have impact on the calculation of the Daily Margin Requirement, for which collateral must be posted by 10:30 on Wednesday 30th October, 2013.
Margin Concentration Limits will be implemented to provide the Clearinghouse with additional default coverage in relation to concentrated exposures and are introduced as a consequence of EMIR requirements.
The Margin Concentration Limits will be applied on Initial Margin on Clearing Account and market group level. When the Initial Margin for a Clearing Account and market group is above a predefined threshold, the Initial Margin will be scaled up with a scaling factor. The Initial Margin will correspondingly be scaled down when it is below the threshold for scaling down.
For more information please see the Margin Concentration and Position Limit Policy.
Currently the scaling factors are equal for all market groups.
Initial Margin thresholds for scaling up, scaling factors and thresholds for scaling down:
Limit 1: €110 000 000 15% €120 000 000
Limit 2: €140 000 000 25% €150 000 000
The scaling factors per market group are available on the ftp server (ftp://ftp.nordic.nasdaqomxtrader.com/Commodities/Risk/).
For further information, please contact NASDAQ OMX Commodities:
Kjersti Ulset, Head of Risk Management Commodities, phone +47 48281600, email@example.com
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
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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.
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