Nasdaq Nordic Undergoes Competitive Clearing Initiative With CCPs

The decision by Nasdaq will impact trading members on its Nordic exchange, across cash equity markets in Stockholm, Helsinki, and

Nasdaq Nordic has announced the installment of both LCH.Clearnet Ltd and SIX x-clear AG as additional cash equity central counterparty providers (CCP), according to a Nasdaq statement.

The decision by Nasdaq will impact trading members on its Nordic exchange, namely across cash equity markets in Stockholm, Helsinki and Copenhagen. LCH.Clearnet Ltd, SIX x-clear AG, and Nasdaq Nordic’s existing CCP, EuroCCP N.V., will collectively achieve operation across the exchange’s equity markets, creating a more competitive environment for trading members.

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The competitive clearing changes will help broaden the options available to market participants on Nasdaq Nordic, which will focus on lowering investing costs, whilst strengthening liquidity for all trading members. At present, Nasdaq Nordic has set a deadline for the introduction for clearing of LCH.Clearnet Ltd of November 23, 2015 – additionally, SIX x-clear will adhere to a deadline of March 29, 2016, subject to requisite regularity approvals.

According to Hans-Ole Jochumsen, President of Nasdaq, in a recent statement its trading member decisions: “A competitive clearing model in cash equities will increase liquidity and lower investor costs. Introducing a choice of CCP for the benefit of trading members will fundamentally contribute to the long-term competitiveness of both the Nasdaq Nordic and European markets.”

Last month, XBT Provider AB launched its Bitcoin Tracker EUR, a Bitcoin-based security, denominated in euros, for trading on Nasdaq’s Nordic exchange. XBT Provider’s Bitcoin Tracker EUR became available for trading back on October 5, 2015 and was developed to help provide market participants with convenient access to the returns of the underlying asset, i.e. US dollar (USD) per Bitcoin.

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