Exchange group Nasdaq OMX has signed a memorandum of understanding with European clearing houses SIX x-clear and EuroCCP to add the two firms to its central counterparty (CCP) service for Nordic stocks.
The deal will allow users to clear stocks traded on Nasdaq OMX’s Nordic stock exchanges through x-clear, EuroCCP or European Multilateral Clearing Facility (EMCF), which the exchange had already chosen as the launch clearer for its Nordic CCP service. Nasdaq OMX plans to introduce mandatory CCP clearing on its Nordic markets on 9 October.
Nasdaq OMX owns a 22% stake in EMCF, with the remainder owned by the Dutch government following its purchase of banking group Fortis Nederland last year.
The addition of the two additional clearers is conditional on the Financial Services Authority, the UK’s financial regulator, approving interoperability agreements between EMCF, x-clear and EuroCCP.
“Through these agreements, we are acting on our outlined strategy to increase market liquidity by building an open, competitive CCP model in the Nordics,” said Hans-Ole Jochumsen, president of Nasdaq OMX Nordic, in a statement. “The ability to choose a CCP will allow price and service advantages to our customers, and ultimately drive trading velocity on our Nordic markets.”
Nasdaq OMX operates the national stock exchanges in Sweden, Denmark, Finland and Iceland, and offers trading in Norwegian stocks through Nasdaq OMX Stockholm.