Nasdaq Clearing is introducing an enhancement to its margin framework in form of a Stress Margin Add-on.
The purpose of the Stress Margin Add-on is to add a specific stress component to the margin requirement by incorporating a share of a portfolio’s tail risk to the margin requirement. This add-on provides the Clearinghouse the ability to lower the mutualization of a specific account’s tail risk among clearing participants by shifting part of the risk from the member collective to the individual account holder.
The Stress Margin Add-on will increase margins for clearing participants with large stress losses in relation to initial margin.
The add-on will be implemented on 2019-01-31. Affected members will be contacted with details regarding their margin add-on requirements.
More information can be found in the Guidelines on Stress Margin Add-ons attached to this notice, or through the following link:
https://business.nasdaq.com/trade/clearing/nasdaq-clearing/risk-management/index.html
For further information, please contact Nasdaq Clearing Risk Management:
Risk Management: clearing.risk@nasdaq.com, +46 8 405 7088, +47 6710 8426
Media contact:
David Augustsson, Corporate Communication, phone +46 734496135, david.augustsson@nasdaq.com
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 100 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to over 4,000 total listings with a market value of approximately $15 trillion.
To learn more, visit business.nasdaq.com
About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
Nasdaq Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with Nasdaq Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq Clearing is the trade name of Nasdaq Clearing AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
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