NASDAQ OMX INTRODUCES NEW SUB-ACCOUNTS FOR AFFILIATES AND EXTENDS PROP FEES
NASDAQ OMX introduces a new technical sub-account for Client Accounts called Affiliates Sub-Account (“AF Sub-Account”) dedicated to clearing of transactions from entities within the same group of companies as the Clearing Member.
NASDAQ OMX kindly reminds Clearing Members that in accordance with EMIR requirements, the NASDAQ OMX Clearing Rules require that a Clearing Member may not use the Proprietary Account for clearing of transactions in respect of entities within the same group of companies as the Clearing Member. Such entities shall be regarded as Customers or Clients, as applicable.
The Proprietary Fees are charged for Members’ trading on their own behalf on Proprietary Accounts and Members’ trading on behalf of entities within the same group of companies as the member on Client Accounts or Customer Accounts specifically set up in respect of such trading. For this purpose, NASDAQ OMX will now establish the new AF Sub-Account.
When calculating the Proprietary Fees (Appendix 3B in the Rules), NASDAQ OMX will consolidate the volumes of the Member’s Proprietary Accounts and the volumes of the AF Sub-Accounts for the entities within the same group of companies (“Affiliates”).
This will apply to the fees for the Members who have opened new Affiliates Sub-accounts. Consolidation will occur from the beginning of the month during which the Member requested opening the AF Sub-Account.
If the Member wants to apply Proprietary Fees for trading or clearing for affiliates on an Omnibus Account then transactions relating to such affiliate must be allocated to an AF Sub-Account within such Omnibus Account. The Clearing Member may not allocate transactions relating to any other party to such AF Sub- Account.
Moving existing Affiliates’ positions from other accounts, such as Own Inventory (OI) to the AF Sub-Accounts is free of charge in connection with opening the new AF Sub-Account.
The Clearing House may ask the Member to provide evidence that the relevant entity belongs to the same group of companies as the Member.
Fees for members that are Market Makers are charged according to Appendix 3A Market Maker Fee list.
The AF Sub-Accounts can be opened starting on Feb, 20th, 2014. Members wanting to apply the Proprietary Fees to entities in the same group of companies are kindly asked to contact Member Services: MS.Geniuminet@nasdaqomx.com.
Members who are not trading derivatives on behalf of other entities in the same group of companies need not do anything.