The Osaka Securities Exchange (OSE) and Nasdaq have commissioned New York's Depository Trust and Clearing Corporation to explore the creation of a clearing and settlement system for cross-border and non-Japanese transactions.
OSE currently provides central counterparty functions for Nasdaq Japan, which is soon to introduce a dealer-based trading platform. The new platform will be linked with Nasdaq's European and US markets to provide issuers with a global pool of liquidity.
Under the Memorandum of Understanding (MOU) signed with the DTCC, OSE and Nasdaq are to plan an improved solution for the clearance and settlement of cross-border transactions and transactions in non-Japanese securities. It is envisioned that this solution will ultimately be part of a seamless global clearance and settlement solution supporting Nasdaq's markets worldwide
John Hilley, chairman and CEO of Nasdaq International, comments: "This particular initiative, which brings together our key clearance and settlement partners, DTCC and OSE, makes a strong statement about our commitment to building a global trading and settlement platform and particularly underscores our recognition of the competitive advantages to be garnered in the clearance and settlement space."