Delivery of Allowance Contracts with expiry in December 2014 is approaching. Expiration Day for the contracts NEDEC4, EUADEC-14, NAVEDEC4 and NCDEC4 is December 15, 2014.
Nasdaq Clearing would like to remind its members the following:
The net sellers must ensure that they have delivered all European Union Allowances (EUAs), Certified Emission Reductions (CERs) and European Union Aviation Allowances (EUAAs) to the Clearing House's registry account within 19.00 CET on the Expiration Day. A failure to do a delivery will constitute a Default Event.
Account number for delivery: EU-100-5016825-0-9
All net sellers shall add EU-100-5016825-0-9 to their Trusted Account List. The transfer shall be confirmed through the Allowance delivery form found here .
The Margin Requirement for European Union Allowances (EUAs), Certified Emission Reductions (CERs) and European Union Aviation Allowances (EUAAs) contracts will increase considerably towards the Expiration Day as the Contracts’ volatilities will increase and the contracts' correlations will be removed, giving no margin credits. The increased margins reflect the approaching settlement. The net sellers may pre-deliver Allowance Contracts in advance of the Expiration Day. Pre-delivered Allowance Contracts will reduce the net sellers' need to post extra collateral to cover the increased Margin Requirement.
Net buyers must have collateral to cover payment margin equal to the net settlement within 10.30 CET 16 December 2014 at the latest for NEDEC4, EUADEC-14, NAVEDEC4 and NCDEC4.
Trading and clearing of NEDEC4, EUADEC-14, NAVEDEC4 and NCDEC4 closes at 18.00 CET on the Expiration Day (15 December, 2014).
For further information, please see Trading and Clearing Rules Appendix 2 - Contract Specifications, part B, chapter 3 .
For further information, please contact Nasdaq Commodities:
Carl Fredrik Waller, Clearing Operations, phone +46 8 405 6880,
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759,
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About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq 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 Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq 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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