Global exchange group Nasdaq OMX has set a seven-month timeline for the implementation of interoperable central counterparty (CCP) services for its Nordic markets.
CCP providers EuroCCP, European Multilateral Clearing Facility (EMCF) and SIX x-clear have agreed to interoperate from 29 January 2010, allowing Nasdaq OMX Nordic members to choose between post-trade providers.
Currently, Nasdaq OMX offers optional CCP services for its Nordic markets through EMCF, but plans to make this mandatory by 9 October 2009. 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.
Nasdaq OMX operates the national stock exchanges in Sweden, Denmark, Finland and Iceland, and offers trading in Norwegian stocks through Nasdaq OMX Stockholm.
“We are enthusiastic about the determination among our CCP partners to accomplish interoperability and we are confident that a competitive CCP model will act to drive liquidity and lower investor costs,” said Hans-Ole Jochumsen, president of Nasdaq OMX Nordic. “This timeline will allow Nasdaq OMX Nordic to go from bilateral to competitive clearing in only 16 months, making us the first regulated market to offer CCP with a choice of three different service providers.”
The London Stock Exchange added Swiss clearer SIX x-clear in addition to incumbent clearer LCH.Clearnet Ltd from 12 December last year. It is currently the only exchange to offer multiple clearing services.
“This initiative can truly be seen as a milestone in Europe since the implementation of MIFiD and we trust it will encourage other European exchanges to offer a similar model to their members,” added Jan Booij, CEO of EMCF.