Effective June 16, 2014, Freight and Fuel Oil transactions will no longer be subject to pre-novation at NASDAQ OMX Clearing AB.
As a result the Clearing Rules of NASDAQ OMX Commodities Appendix 14 - Block Trade, EFP and EFS Clearing Procedures will be amended:
- Section 4 has been removed
- Freight and Fuel Oil Contracts have been included in section 3 - Registration of Block Trades/EFP and EFS to reflect that all Block Trades/EFP and EFS transactions follow the same clearing procedures regardless of contract type
- Sections 3.3 and 3.5 have been amended to clarify the exact time when the transactions are deemed registered as Clearing Transactions for the purposes of the Clearing Rules
Also effective June 16, 2014, Exposure Limit Checks will be removed for all transaction types at NASDAQ OMX Clearing. The following Appendices in the Clearing rules of NASDAQ OMX Commodities will be amended accordingly:
- Appendix 4 - Non Exchange Clearing Procedures
- Appendix 14 - Block Trade, EFP and EFS Clearing Procedures
- Appendix 15 - Third Party Exchange Transaction Clearing Procedures
The removal of pre-novation for Freight and Fuel Oil will cause an increase in both lead days and margin parameters for the following Freight and Fuel Oil contracts: TC2,TC4,TC6,TD3,TD5, RDM35FO, SPO180FO and SPO380FO. The new margin parameters will be published later this week and will be effective June 16, 2014.
Collateral deficit limits according to the Commodities Intra-Day Limit Policy will be decreased for members only active in Freight and Fuel Oil markets:
- Collateral deficit Limit in absolute terms: 1,5 MEUR
- Collateral deficit Limit in relative terms: 15%
For the avoidance of doubt, pre-novation checks for Seafood and Iron Ore transactions will remain unchanged.
An updated policy will be published later this week.
For the upcoming changes to the Clearing Rules please see:
http://www.nasdaqomx.com/commodities/Marketac...lframework
For further information, please contact NASDAQ OMX Commodities:
Your contact:
Hanne Johansson, AVP Sales Executive Commodity Sales –Global, phone +47 67 10 85 20 hanne.johansson@nasdaqomx.com
Mette Steinsland, Legal Counsel, phone +47 67 10 80 71/+47 40 03 51 18
mette.steinsland@nasdaqomx.com
Kjersti Ulset, Head of Risk Management Commodities, +47 6710 8415/+47 48281600, kjersti.ulset@nasdaqomx.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaqomx.com
About NASDAQ OMX
NASDAQ OMX (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, NASDAQ OMX enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. NASDAQ OMX is home to more than 3,300 listed companies with a market value of over $8 trillion. To learn more, visit www.nasdaqomx.com
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
About NASDAQ OMX Clearing
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Clearing AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
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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.
This document is being directed solely at and may only be communicated to persons: (i) who have professional experience in matters relating to investments as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") or, (ii) who are high net worth companies, unincorporated associations and trustees of high value trusts within Article 49(2)(a)-(d) of the FPO, or (iii) to whom it may otherwise be lawful to distribute it (all such persons together being referred to as "Relevant Persons"). Any investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.
