Nasdaq OMX Nordic interoperable in April 2012 04 October 2011Stockholm Reporter: Anna Reitman
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Nasdaq OMX Nordic has announced its intention to introduce competitive Central Counterparty (CCP) clearing by end of April 2012. It will become interoperable with EMCF, EuroCCP and SIX x-clear, allowing members of the exchange to choose between multiple clearing houses to clear and settle trades.
NASDAQ OMX Nordic implemented CCP clearing on its markets in Stockholm, Helsinki and Copenhagen two years ago, and was then the first European exchange to announce its intent to introduce a competitive clearing model. Due to regulatory issues related to interoperability between clearing houses, the process was delayed. A solution on interoperability proposed by the involved clearing houses has satisfied the CCPs’ regulators, allowing NASDAQ OMX Nordic to move forward with its introduction on competitive clearing.
Hans-Ole Jochumsen, president of NASDAQ OMX Nordic says, “NASDAQ OMX early declared our intent to pursue a competitive clearing model, and with a regulatory consensus now in place, we are eager to move forward. We are confident that a competitive CCP model will act to drive liquidity and lower investor costs, thus benefiting our clients and the European capital market as a whole.”
CCP clearing on the Nordic markets encompasses large cap companies listed in Stockholm and Copenhagen, and large- and mid cap companies listed in Helsinki. Norwegian shares traded in Stockholm and ETFs listed in Stockholm and Helsinki are also CCP cleared.
Petri Simberg, chairman of the Nordic Securities Association commented: “Our members are positive and committed to the introduction of a competitive and interoperable CCP model in the Nordics. A solution with a truly competitive choice of clearers will increase the attractiveness of the Nordic equities market and result in liquidity and cross netting advantages that will benefit our members.”
Nasdaq OMX Nordic is the latest in a series of announcements of European exchanges planning to move to the interoperability model, among them, Turquoise and Chi-X Europe.
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