In Exchange and Clearing Information no 36/15 and 43/15 Nasdaq Commodities informed that the three year exemption from EMIR that allows non-financial clearing members to use existing Bank Guarantees as collateral is about to expire and that affected members need to take action.
Phase-out of Bank Guarantees – upcoming deadlines
Nasdaq Commodities would like to remind members using Bank Guarantees as collateral about the upcoming deadlines:
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Deadline |
1. Replace non-fully backed Bank Guarantees with other types of eligible Collateral |
2. Transfer to a new Clearing Model |
| 1 Sep 2015 | From this date, no new non-fully backed bank guarantees will be accepted as collateral (adjusting the amount on an existing bank guarantee will be allowed). | |
| 15 Sep 2015 |
Deadline to inform Nasdaq Clearing about the final decision to either: 1) replace the non-fully backed bank guarantee with other types of eligible collateral; OR 2) transfer to a new clearing model. The name of the new clearing member as well as the considered client model must be included in the notification.
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| 30 Sep 2015 | General Clearing Members (GCM) and/or Clearing Members that considers offering services to clients transferring from other clearing models must be approved by Nasdaq Clearing and live in production by this date. | |
| 15 Oct 2015 |
Clearing members replacing their non-fully backed bank guarantee needs to gradually reduce the guarantee amount. Not later than Jan 18, 2016 the guarantee amount shall be reduced to 75% of the margin requirement. The remaining 25% must be covered with other types of eligible collateral. Nasdaq Clearing will communicate a preliminary amount (based on Jan-Sep average margin requirement) for which the non-fully backed bank guarantee is eligible as collateral after Jan 18, 2016. |
Clients, Clearing Members and GCM must have signed and submitted all relevant legal agreements and forms to Nasdaq Clearing.
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| 27 Nov 2015 | Clearing members and the associated stakeholders will receive detailed information from Nasdaq Clearing when the positions and obligations will be transferred to the new clearing model. | |
| Jan 8 2016 |
Not later than Jan 18, 2016 the guarantee amount shall be reduced to 75% of the margin requirement. The remaining 25% must be covered with other types of eligible collateral. Nasdaq Clearing will communicate the final amount (based on 2015 average margin requirement) for which the non-fully backed bank guarantee is eligible as collateral after Jan 18, 2016. |
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| 18 Jan 2016 | Not later than Jan 18 the guarantee amount shall be reduced to 75% of the margin requirement. The remaining 25% must be covered with other types of eligible collateral. | |
| Jan – Feb | Clearing members can expect to receive a time slot when Nasdaq Clearing will transfer the positions and the obligations to the new clearing member/ overtaking member. Detailed information on when positions and obligations will be transferred is presented end of November 2015. | |
| 29 Feb 2016 | Non-fully backed bank guarantees will be removed as eligible collateral from the collateral list of Nasdaq Clearing’s Rules and Regulations. | |
| 15 Mar 2016 | Regulatory deadline when the non-fully backed bank guarantees expire as eligible collateral | |
Please also visit Nasdaq Clearing web where more information about the Bank Guarantee phase out process can be found: http://www.nasdaqomx.com/europeanclearing/collateral-management/bank-guarantee-phase-out
For further information, please contact Nasdaq Commodities:
Knut Rabbe, Head of Sales Commodities Nordic, phone +4767528032/+4793220800, knut.rabbe@nasdaq.com
Morten Refsdal, Sales Executive Commodities, phone +47 67 10 84 16/+47 930 84 425, morten.refsdal@nasdaq.com
Staffan Friberg, Sales Executive Commodities, phone +46 8 405 62 93/+46 73 449 62 93, staffan.friberg@nasdaq.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaq.com
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com.
About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
NASDAQ OMX Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq Clearing is the trade name of NASDAQ OMX Clearing AB which 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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