Signs MoU agreements with SIX x-clear and EuroCCP
Stockholm, May 11, 2009 - NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) today announces
it has entered into Memorandum of Understanding agreements with Central
Counterparty (CCP) clearing service providers SIX x-clear and EuroCCP in order
to support a competitive clearing model on its Nordic markets.
In January 2009 NASDAQ OMX announced its intention to seek additional CCP
partners that fulfill the Nordic markets requirements. As a result of the
pending agreements with SIX x-clear and EuroCCP, trading participants will be
able to select CCP clearing from their choice of service providers. This
multiple CCP model will contribute to the long-term competitiveness of NASDAQ
OMX Nordic Markets.
“Through these agreements, we are acting on our outlined strategy to increase
market liquidity by building an open, competitive CCP model in the Nordics,”
says Hans-Ole Jochumsen, President of NASDAQ OMX Nordic. “The ability to choose
a CCP will allow price and service advantages to our customers, and ultimately
drive trading velocity on our Nordic markets.”
On October 9th 2009 NASDAQ OMX will introduce mandatory CCP clearing on its
Nordic markets through its first CCP service provider EMCF (European
Multilateral Clearing Facility).
Central counterparty clearing refers to a method of clearing trades where the
clearing firm acts as an intermediary between every buyer and seller, with all
participants serving as counterparties. With the CCP backing all transactions,
counterparty risk -- or the risk that one party to a trade suffers losses
because the other party cannot fulfill its obligations -- is mitigated.
The additional availability of CCP services from SIX x-clear and EuroCCP on
NASDAQ OMX Nordic markets is conditional on FSA approval of Interoperability
Agreements between EMCF and SIX x-clear and EuroCCP.
Marco Strimer, CEO SIX x-clear commented, “We are pleased to enter this
agreement with NASDAQ OMX as it continues our philosophy of interoperability and
competition. This, we believe, provides participants with greater choice and
creates a more efficient and cost effective post trade infrastructure bringing
benefits to all.”
Diana Chan, Chief Executive Officer of EuroCCP, added: “NASDAQ OMX's decision to
pursue a multiple CCP model for its Nordic markets marks an important step
forward in the development of interoperability and competition between CCPs,
something that EuroCCP strongly supports. Market participants will be able to
use the CCP of their choice. Everyone at EuroCCP is eager to launch operations
in this market.”
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Jan Booij, CEO of EMCF, said; “We look forward to working with other CCPs for a
successful implementation of competitive clearing in the Nordic markets.
Interoperability between CCPs is the way forward and will create a sound
foundation for efficient post-trade operations in the European securities
markets.”
Interoperability between clearing houses allows markets to interact with
multiple clearing houses to clear and settle their trades, increasing
competition and lowering costs for investors. CCP interoperability enables cross
netting of trades and provides significant cost savings to investors by
eliminating the need to pay a clearing fee on both the opening and the closing
of a transaction.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers
trading, exchange technology and public company services across six continents,
with over 3,800 listed companies. NASDAQ OMX offers multiple capital raising
solutions to companies around the globe, including its U.S. listings market,
NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A
sector. The company offers trading across multiple asset classes including
equities, derivatives, debt, commodities, structured products and
exchange-traded funds. NASDAQ OMX technology supports the operations of over 70
exchanges, clearing organizations and central securities depositories in more
than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal
entities but describe the common offering from NASDAQ OMX exchanges in Helsinki,
Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information
about NASDAQ OMX, visit http://www.nasdaqomx.com.
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.
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Media Contacts:
NASDAQ OMX:
Anna Rasin, AVP Corporate Communications Nordics
+46(8)405 66 12
anna.rasin@nasdaqomx.com
