The Stockholm-based clearinghouse, Nasdaq OMX Clearing, has received regulatory approval by the Swedish Financial Services Authority (SFSA) to operate as a central counterparty under the European Market Infrastructure Regulation (EMIR).
Nasdaq OMX Clearing is the first clearinghouse in Europe to be authorized as EMIR compliant after its risk modeling, systems and operations were deemed sufficiently resilient and possessing the ability to handle increased demand during periods of market stress. It was also the first facility to provide a solution to protect client assets in the case of a default of a clearing member.
"Our clearing house was the first with true multi-asset derivatives clearing in Europe," says Hans-Ole Jochumsen, executive vice president of transaction services for the Nordics at NASDAQ OMX. "Now, as the first to be EMIR authorised, we can focus on further developing our offering, including an expansion within interest rate swaps and German power derivatives, as well as introducing clearing of foreign exchange products."
Similar to Dodd Frank in the US, the European regulation EMIR mandates central counterparty clearing of over-the-counter (OTC) derivatives in order to mitigate the systemic risk in the financial markets and increase stability.
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