Financial Default Fund – New requirement to be met by April 23, 2015
Due to a significant increase in the exposure calculation, NASDAQ OMX Clearing AB (“Nasdaq Clearing”) has decided to make an additional, intra-quarterly Default Fund requirement calculation in respect of the Financial Default Fund. The new Default Fund requirements will be distributed on April 9, 2015 and must be covered by participants at the latest by April 23, 2015 as further detailed below.
Following the recalculation the total size of the Default Fund for the Financial Market will be SEK 1,615 million.
If your collateral value does not cover the upcoming Default Fund requirement, please make sure to post additional collateral in Eligible Funds to meet your requirement. Contributions to the Default Fund shall be settled on Nasdaq Clearing’s relevant bank or CSD/ICSD account no later than 10:30 CET (with summer savings time) on April 23, 2015. All transactions to the Default Fund shall include the Contribution Reference (i.e. the relevant Default Fund custody account number).
Please review our Standard Settlement Instruction (SSI) before posting Default Fund contributions to make sure you are using the most recent version. You will find the SSI here.
Normally, Nasdaq Clearing recalculates the Default Fund size and participants’ Default Fund contributions on a quarterly basis. However, Nasdaq Clearing is entitled according to its clearing rules to conduct more frequent recalculations (please refer to Section 1.9A.21 of the Default Fund Rules). Such intra-quarterly recalculations will be undertaken whenever deemed necessary by Nasdaq Clearing, e.g. if the exposure changes significantly and the Default Fund must be increased as a consequence.
For further information about the Default Fund, please visit the Default Fund website or contact us using the details below.
Collateral Management team
Email: cms@nasdaq.com
Phone +46 8 405 6881
