14 February 2016

Nasdaq OMX to build Nordic clearing house for interest rate swaps

23 June 2010  |  12086 views  |  0 zeroes

Nasdaq OMX has initiated a pilot project with SEB and the Swedish National Debt office to offer central counterparty clearing of interest rate swaps as a prelude to the creation of a full scale clearinghouse for IRS in Swedish kronor.

The first transactions under the new model have already been cleared through the Nasdaq OMX CPP. Previously, Skr-denominated IRS, a market with an average daily turnover of Skr30 billion, have been collateralised and settled bilaterally.

The transatlantic exchange says it has already initiated a strategic dialogue with all major swap dealers in Sweden, with the aim of rolling out a national central clearing utility.

"Through the IRS central counterparty clearing offering, Nasdaq OMX is building a Nordic clearing house that covers all Fixed Income instruments," says Erik Thedéen, head of Nordic fixed income and president Nasdaq OMX Stockholm. "This service will reduce the administrative burden and, more importantly, bring with it a reduction of counterparty risk for market participants and thereby improve financial stability. The ability to net multiple post-trade transactions through a central counterparty also allows our market participants to reduce collateral significantly."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

28 April, 2010
14 April, 2010
17 February, 2010
16 November, 2009
27 August, 2009
06 August, 2009
20 July, 2009
13 May, 2009
04 December, 2008
16 October, 2008

Related company news


Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
16362 views comments | 106 tweets | 91 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
9118 views comments | 30 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
8714 views comments | 35 tweets | 10 linkedin
Is Paym a failure?Is Paym a failure?
7222 views 16 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6590 views comments | 17 tweets | 28 linkedin

Featured job

Find your next job