The ESMA Board has voted against a proposal initiated by the Nordic FSAs to hold a public consultation on a prolonging of the existing bank guarantee exemption under EMIR. The regulatory grace period expiring on March 15, 2016, allows non-financial clearing members to use non-fully backed bank guarantees as collateral towards central counterparties (CCP) to cover for margin requirements related to power and gas. Please see the information published by ESMA here .
As previously communicated, Nasdaq has worked to secure and create the best possible solutions for clearing members in a market where the existing bank guarantee solution is no longer eligible as collateral. It is now urgent that the members of Nasdaq Clearing immediately follow the phase out plan earlier communicated (and as seen below) and either replace bank guarantees with other types of eligible collateral or transfer to a different clearing model. Nasdaq Clearing is removing Non-fully backed bank guarantees as eligible collateral from February 29, 2016.
Phase-out of Bank Guarantees – upcoming deadlines: Nasdaq Commodities would like to remind members using Bank Guarantees as collateral about the upcoming deadlines:
| Deadline | 1. Replace non-fully backed Bank Guarantees with other types of eligible Collateral | 2. Transfer to a new Clearing Model |
| 27 Nov 2015 | Given that relevant legal agreements have been completed and submitted to Nasdaq Clearing, Clearing members and the associated stakeholders will receive detailed information from Nasdaq Clearing when the positions and obligations will be transferred to the new clearing model. | |
| Jan 8 2016 | Not later than Jan 18, 2016 the guarantee amount shall be reduced to 75% of the average margin requirement of 2015. Any margin requirements exceeding this must be covered with other types of eligible collateral. On Jan 8 2016, Nasdaq Clearing will communicate the final amount (based on 2015 average margin requirement) for which the non-fully backed bank guarantee is eligible as collateral after Jan 18, 2016. | |
| 18 Jan 2016 | Not later than Jan 18 the guarantee amount shall be reduced to 75% of the average margin requirement of 2015. Any margin requirements exceeding this must be covered with other types of eligible collateral. | |
| Jan – Feb | Clearing members can expect to receive a time slot when Nasdaq Clearing will transfer the positions and the obligations to the new clearing member/ overtaking member. Detailed information on when positions and obligations will be transferred is presented end of November 2015. | |
| 29 Feb 2016 | Non-fully backed bank guarantees will be removed as eligible collateral from the collateral list of Nasdaq Clearing’s Rules and Regulations and all margin requirements shall be covered with eligible collateral | |
| 15 Mar 2016 | Regulatory deadline when the non-fully backed bank guarantees expire as eligible collateral | |
Please also visit Nasdaq Clearing web where more information about the Bank Guarantee phase out process can be found: http://www.nasdaqomx.com/europeanclearing/col...-phase-out
F or further information, please contact Nasdaq Commodities:
Knut Rabbe, Head of Sales Commodities Nordic, phone +47 6752 8032/+47 9322 0800, knut.rabbe@nasdaq.com Morten Refsdal, Sales Executive Commodities, phone +47 67 10 84 16/+47 930 84 425, morten.refsdal@nasdaq.com
Staffan Friberg, Sales Executive Commodities, phone +46 8 405 62 93/+46 73 449 62 93, staffan.friberg@nasdaq.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaq.com
About Nasdaq
Nasdaq (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 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 is home to more than 3,600 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com .
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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