Financial Default Fund – New requirement to be met by October 24, 2016
Due to a significan t increase in the exposure calculation, Nasdaq Clearing AB (“Nasdaq Clearing”) has decided to make an additional, intra-quarterly Default Fund requirement calculation in respect of the Financial Default Fund. The new Default Fund requirements will be distributed on October 10, 2016 and must be covered by participants at the latest by October 24, 2016 as further detailed below.
Following the recalculation the total size of the Default Fund for the Financial Market will be SEK 1,396 million.
The new requirement is presented in the Default Fund Requirement and Evaluation report which can be found in Genium INET Clearing Workstation.
The new requirement is shown under column heading “Required Contribution (2016-10-24)”.
If your current collateral value doesn’t cover your upcoming requirement, please make sure you meet your requirement on time. Posted contributions shall be transferred and settled on Nasdaq bank or CSD/ICSD accounts no later than 10:30 CET on October 24, 2016. All transactions to the Default Fund shall be marked with the Contribution Reference (Default Fund custody account number).
Please review our SSI before posting default fund contributions to make sure you are using the correct one. You will find the SSI here .
Normally, Nasdaq Clearing recalculates the Default Fund size and participants’ Default Fund contributions on a quarterly basis. However, Nasdaq Clearing is entitled according to its clearing rules to conduct more frequent recalculations (please refer to Section 1.9A.21 of the Default Fund Rules). Such intra-quarterly recalculations will be undertaken whenever deemed necessary by Nasdaq Clearing, e.g. if the exposure changes significantly and the Default Fund must be increased as a consequence.
For further information about the Default Fund, please visit the Default Fund website or contact us using the details below.
For further information, please contact Nasdaq:
Risk Management: risk.management@nasdaq.com , +46 8 405 7088
Clearing Operations: clearing@nasdaq.com , +46 8 405 6880