Member sponsored Default Fund
The financial crisis of 2008 highlighted the importance of stable and resilient financial systems. Efforts to improve market stability are being coordinated globally and a complete overhaul of the regulatory framework in both the EU and US is expected to result in a new regulatory regime for Central Counterparties (CCPs) by the end of 2012. NASDAQ OMX has been required to adapt to the new regulations and at the same time ensure member implementation of new requirements and features. NASDAQ OMX Clearing* manages risk through a comprehensive counterparty risk management framework, which is made up of policies, procedures, standards and resources. NASDAQ OMX Clearing faces both traditional business risks and specific risks unique to derivatives clearing services. The most noteworthy risk is counter-party default, i.e. the risk that one or several market participants will default on their obligations to the clearing organization. One requirement, stipulated in the proposed European Market Infrastructure Regulation (EMIR), is to make it mandatory for CCPs to have a default fund to which clearing members of the CCP will have to contribute. This proposal has had a direct effect on the NASDAQ OMX Clearing setup. As of March 1st 2012, NASDAQ OMX Clearing does maintain a guarantee fund or reserve fund to which users contribute and does consequently enforce a loss-sharing scheme among its members. This means that in a default situation, NASDAQ OMX Clearing’s own risk-bearing capital is at risk together with that of the non-defaulting members. Members required to contribute to the Default Fund are:General Clearing Members and Direct Clearing Members on the NASDAQ OMX Derivatives Market, the NASDAQ OMX Commodities market and the NASDAQ OMX N2EX market. Further InformationNASDAQ OMX publishes documentation and information relevant for the Default Fund on this website. ContactsFor general Default Fund information and enquiries, please contact defaultfund@nasdaqomx.com. For information on Derivatives Risk Management and contribution calculations, please contact David Sjöblom, Risk Management, at +46 8 405 6377 For information on Commodities/N2EX Risk Management and contribution calculations, please contact Kjersti Ulset, Risk Management, at +47 6 710 8415
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Information regarding extension of Transition PeriodNASDAQ OMX will, subject to board approval, prolong the Transition Period, as stated in the transition provisions in the Default Fund Rules set out in Sections 1.9A.36-38 of the Rules and Regulations of NASDAQ OMX Derivatives Markets (the “Derivatives Rules”), in Clearing Appendix 9, Section 12, of the NASDAQ OMX Commodity Derivatives Clearing Rules (the “Commodity Rules”) and in Clearing Appendix 8, Section 12, of the N2EX Market Clearing Rules (the “N2EX Rules”), from April 16th 2012 to (and including) June 1st 2012. Please note that these transitional provisions shall cease upon the lapse of the Transition Period, whereby the Clearing House shall be entitled to withdraw any funds contributed under Section 1.9A.36 (b) of the Derivatives Rules and Section 12.1 (b) of the Commodity Rules and the N2EX Rules respectively, and the remaining parts of the Default Fund Rules shall apply in full. Rules & Regulations and General terms to Custody Account amendments120516 Default CAA General Terms For All Members 120516 Default CAA General Terms For All Members_amendments DRAFT Appendix 26 Default Fund Rules 120515 DRAFT Appendix 26 Default Fund Rules 120515 track changes DRAFT Clearing Appendix 8 - Default Fund Rules 120515 DRAFT Clearing Appendix 8 - Default Fund Rules 120515 track changes DRAFT Clearing Appendix 9 - Default Fund Rules_120515 DRAFT Clearing Appendix 9 - Default Fund Rules_120515_track changes DRAFT N2EX Clearing Rules - General Terms 120515 DRAFT N2EX Clearing Rules - General Terms 120515 track changes DRAFT OSLO Clearing Rules - General Terms 120515 DRAFT OSLO Clearing Rules - General Terms 120515 track changes Updated April 16th 2012 Clarification to Default Fund Custody Account Agreement and related General TermsDownload PDF here (in English) Download PDF here (in Swedish) Feb 2012 |
