European Multilateral Clearing Facility (EMCF) has launched Nordic central counterparty clearing (CCP) services with NASDAQ OMX and Burgundy
NASDAQ OMX Nordic and EMCF launched a full CCP service on the NASDAQ OMX exchanges in Copenhagen, Helsinki and Stockholm.
Beginning today, NASDAQ OMX has introduced mandatory CCP on nine Nordic securities; three Finnish, Swedish and Danish stocks respectively. The introduction of central counterparty clearing in the Nordic equity markets is part of NASDAQ OMXs strategy to increase market liquidity by building an open, competitive CCP model in the Nordics. NASDAQ OMX Nordic and its three CCP partners EMCF, SIX X-clear and Euro CCP have further agreed to achieve competitive clearing by January 2010.
Hans-Ole Jochumsen, President of NASDAQ OMX Nordic said, The Nordic equity markets have taken a quantum leap from bilateral clearing to central counterparty clearing in record time. In a worlds first, we have accomplished this on three markets simultaneously. This is the biggest structural change for the Nordic equity markets since trading became electronic in the early 1990s, and I expect the introduction of CCP to have a similar increasing effect on volumes. The Nordic CCP solution has been designed and implemented in close cooperation with our customers, and I would like to thank them for their commitment and determination to accomplish the fastest CCP implementation in history.
EMCF, together with Burgundy, a regional multilateral trading facility (MTF), has also announced the introduction of full mandatory central counterparty clearing (CCP) services for the Nordic region.
Jan Booij, Chief Executive of EMCF said: “The Nordics are growing in importance as a financial centre and we are pleased to be expanding our market share to this region. Working with Burgundy enables us to extend our offering to deliver reliable, cost-effective trading services for market participants. Burgundy will be fully connected with trades on other exchanges linked to EMCF.”
“Finally the Nordic countries will be on the European level with regards to trading and settlement cost competitiveness. EMCF and Burgundy have facilitated this with todays launch for Nordic blue-chip equities. Together we will reduce risks and dramatically lower the cost of trading for European trading participants,” says Olof Neiglick, CEO of Burgundy.