NASDAQ OMX Applauds Treasury's Amendments To OTC Landscape

The NASDAQ OMX Group, Inc comments on Treasury Secretary Timothy Geithner's testimony before the House Financial Services Committee. NASDAQ OMX fully supports Secretary Geithner's proposed regulatory reforms that call for, among other things, to increase the use of central counterparty

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The NASDAQ OMX Group, Inc comments on Treasury Secretary Timothy Geithner’s testimony before the House Financial Services Committee. NASDAQ OMX fully supports Secretary Geithner’s proposed regulatory reforms that call for, among other things, to increase the use of central counterparty clearing (CCP) for OTC derivatives.

NASDAQ OMX is the majority owner of the International Derivatives Group, Inc. (IDCG) which is an approved CFTC regulated clearinghouse for OTC interest rate swap futures contracts and other fixed income derivatives contracts.

“Secretary Geithner has highlighted an issue critical to the future stability of our financial system,” says Bob Greifeld, CEO, NASDAQ OMX. “Central counterparty clearing for these products is an important systemic risk mitigation tool, bringing both risk mitigation and financial efficiencies.”

“Counterparty clearing also provides customers with segmented and protected treatment for positions and collateral, which could have played a key role during the worst days of this financial crisis. We look forward to working with Secretary Geithner and legislators to bring about these fundamental regulatory changes.”

L.D.

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