London, 2013-08-22 15:01 CEST (GLOBE NEWSWIRE) --
As announced on 3 March 2013, NASDAQ OMX is making changes to its European clearing business that will impact all N2EX members.
These changes have been prompted by the European Market Infrastructure Regulation (EMIR) which came into force on 16 August 2012. As a result of these changes NASDAQ OMX will transfer the N2EX clearing business to another entity within the NASDAQ OMX group, by way of a demerger, on 3 September 2013.
The central counterparty (CCP) for N2EX will switch from the existing entity, NASDAQ OMX Stockholm AB, to the regulated exchange company Stockholms Fondsbörs AB. These changes will allow NASDAQ OMX to better serve the requirements of N2EX as a short dated physical market after the full implementation of EMIR later this year.
Key migration activities & timeline
The table below describes the key migration activities that will start on Saturday 31 August. In addition to the table below a graphical timeline overview is available as an attachment to this message, ‘ Timeline Overview. ’
Please note that the N2EX DA Auction will not be impacted by notification and/or product unavailability.
| Date | UK Local Time | Item |
| 26/08 – 31/08 | Instruments with delivery during the suspension period will not be available for trading | |
| 31/08 (Sat) | 15:00 | Trading & clearing suspensions will begin to come into force for the spot and prompt markets; see the section titled ‘Product availability’ for more information. DA Auction remains unaffected |
| 01/09 (Sun) | 14:00 | Trading & clearing will be suspended for all spot and prompt (see Product Availability Schedule for further details) |
| 01/09 (Sun) | 14:00 | Notifications will be suspended for all spot and prompt products between 01/09 14:00 to 03/09 07:00 |
| 01/09 (Sun) | 14:00 | CONDICO Clearing Station (CCS) will be taken offline and member access will be unavailable |
| 01/09 (Sun) | 23:00 | CONDICO Clearing Station (CCS) scheduled to come online (subject to successful migration) |
| 01/09 (Sun) | 23:00 | Members informed via an operational and clearing message of system availability and status of the migration |
| 02/09 (Mon) | 09:40 | DA Auction run as usual with results published at 09:40 (members will face CCP2) |
| 02/09 (Mon) | 12:35 | i028 file sent to ELEXON as CCP2 |
| 02/09 (Mon) | 13:45 | 7 day notification file received and confirmed by NOMX |
| 03/09 (Tue) | 07:00 | Trading & clearing suspensions are lifted for the spot & prompt markets |
| 03/09 (Tue) | 07:00 | Notification suspension lifted for the spot & prompt markets |
| 03/09 (Tue) | 08:00 | Members informed via an operational and clearing message of migration status |
Trading & Clearing impacts of the demerger
Product availability
- The N2EX DA Auction will continue to operate as usual
- Spot and Prompt products will be impacted:
- The complete list of products is outlined in the ‘ Product availability ’ schedule attached to this message.
- As a general rule, no spot or prompt products will be made available that have a delivery period that begins at or beyond 14:00 on Sunday 1 September.
- Also, only Products with deliveries up until 22:00 on Sunday the 1 st September is tradable
- (Example DEP 20130901 is halted (delivery 08:00-24:00) but DP 20130901 (delivery 08:00-20:00) is not halted since the deliveries ends before 22:00 Sunday 1st September)
Notification availability
- All DA Auction notifications will be submitted as usual, however the final notification for CCP1 will occur on Sunday 1 September, thereafter CCP2 will perform all notifications and will be the counterparty in all trades.
- Notifications for spot and prompt products will be unavailable from 14:00 on Sunday 1 September and is scheduled to resume at 07:00 Tuesday 3 September.
Member systems post migration
- No changes will occur to any N2EX application and there will be no impact to the API. However members will be facing a new BSC counterparty and this may require member side adjustments.
- The new details for CCP2 are as follows:
- BSC Trading Party ID: NOMX
- BSC Party Agent ID: NOMXPA
Invoicing & Cash Settlements
- Settlement across CCP1 and CCP2 will be aggregated; this means that invoicing and cash payments/receipts will not be split during or after migration.
- As a result of the demerger entering into force any and all obligations of CCP1 (NOMX Stockholm AB) will transfer to CCP2 (Stockholms Fondbörs AB)
Demerged company name
At the Demerger the Exchange Company will bring along (inherit) the business name NASDAQ OMX Stockholm AB, and the CCP will simultaneously change name to NASDAQ OMX Clearing AB. Those name changes, which are conditional upon the approval by the Swedish Companies Registration Office, will be effective at the same time as the implementation of the Demerger.
Member Readiness
The new ECVNA authorisations between CCP2 and all N2EX members are now in place and testing has been performed successfully. We would encourage all members to review any internal processes and systems that may be affected to ensure they are prepared for the demerger.
Broker Impacts
All N2EX brokers have been contacted and are aware of these changes; in particular brokers should be aware that trading and clearing during the migration period should be in line with the instrument availability as listed within the product availability schedule.
Further Information
All documentation relating to the N2EX demerger is available within the member area on the N2EX website. https://www.n2ex.com/aboutn2ex/ccpchange/ If you do not have a username and password, please contact emma.mckiernan@npspot.com
N2EX contacts:
Emma McKiernan, Client Relationship Manager, +44 7887 744 700, emma.mckiernan@npspot.com
Jason Hall, UK Business Manager, +46 8405 7848, Jason.hall@nasdaqomx.com
Media contacts:
Sara Aadnesen, Director Corporate Communications, NASDAQ OMX Commodities and N2EX, phone: +47 6752 8080/+47 9060 0759, sara.aadnesen@nasdaqomx.com
About N2EX
N2EX is the name of the UK power market offering from Nord Pool Spot and NASDAQ OMX Commodities. NASDAQ OMX Clearing is the authorised clearinghouse.
The website www.n2ex.com provides market information and documentation for the UK power market.
About Nord Pool Spot
Nord Pool Spot runs the leading power market in Europe and offers both day-ahead and intraday markets to its members. 350 companies from 20 countries trade on the market. The Nord Pool Spot group has offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. In 2012 the group had a total turnover of 432 TWh, which includes the auction volume in the UK market N2EX.
For more information, visit www.nordpoolspot.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 and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
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.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm 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.
NASDAQ OMX Commodities has nearly 350 members from over 15 countries covering a wide range of energy producers, consumers and financial institutions.
For more information, please visit www.nasdaqomx.com/commodities
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 Person.
