no 03/10 NASDAQ OMX Commodities set to introduce Inter Commodity Spread Credit 19 April 2010

Lysaker, 25 January 2010

NASDAQ OMX Commodities, part of NASDAQ OMX Stockholm AB, has set 19 April 2010 as the planned date to introduce Inter Commodity Spread Credit. The introduction of this will meet the growing need for margining efficiencies of market participants engaged in clearing activities. Significant collateral benefits will be extended to our members by giving credit to off-set positions in products with sustained price correlation when calculating margins.

This will apply to the NASDAQ OMX Commodities and Nord Pool's products as specified in the methodology document. Where applied, the Inter Commodity Spread Credit will offer margin benefits both for products from the same asset class (e.g. Nordic power v. German power) and for products from separate asset classes (e.g. Nordic power v. EUA allowances). It will be implemented within the existing SPAN  margin model, optimizing the daily margin call for clearing members.

The full list of credits and credits parameters will be announced in due course before the launch. 

Please see http://www.nordpool.com/static/nordpool/archive/upload/Clearing/RiskManagement/intercommodityspreadcredit.pdf" specification of the methodology  (pdf) 

For further information, please contact NASDAQ OMX Commodities: 

Revised risk model questions:
 Kjetil Bundli, risk analyst, clearing risk management, phone +47 6710 8441/+47 9900 3690

Technical questions:
 Ronny Hagen, technical account manager, phone +47 6752 8058/+47 4542 4893

Press contact: 
Thomas Skålnes, corporate communications, phone +47 6752 8080/+47 9340 7300