no 09/14 Introduction of Block Trade Facility on April 7, 2014

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| Source: Nasdaq Commodities

In Exchange Notice 85/13 NASDAQ OMX Commodities informed that the launch for how trades executed outside the Electronic order book shall be reported to the Exchange/Clearinghouse was postponed. The new launch date is now set to April 7 2014 subject to regulatory consent.  

 

The Block Trade Facility applies to the following products:
 

•        Nordic Power

•        German Power

•        Dutch Power

•        Electricity Certificates

•        UK Gas

•        UK Power

•        Allowances

 

Minor amendments also apply to the Freight and Fuel Oil products that are subject to the existing Block Trade Facility (see separate Notice sent to NOS members regarding Freight).

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 March 7 2014 in order for Block Broker Members to be able to report transactions from April 7 2014. The existing OTC Broker agreement will be terminated end of business April 4 2014.

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 March 7 2014.

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 Transaction types Service Description (new version with correct dates and minor adjustments).

   

For further information, please contact NASDAQ OMX Commodities:

Georg Aasen, Vice President NASDAQ OMX Commodities, phone +47 6752 8076

Mari Borgen, Director Products and Market, phone +47 6710 8515

 

Media contact:

Sara Aadnesen, Director Corporate Communications, phone +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 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-40 microsecond average speeds, our technology drives more than 80 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 more than 3,300 listed companies worth $7 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