Nasdaq is the premier provider of services related to the rates market in the Nordics, providing the market with listing, trading, clearing and information services. Nasdaq nominally clears more than SEK 100 billion per day in SEK denominated interest rate derivatives. Since 2010 Nasdaq Stockholm AB provides clearing of OTC Rates. The scope of OTC rates has expanded and does now include interest rate swaps, overnight index swaps and FRA’s. During April 2014, Nasdaq received approval from ESMA to clear OTC Rates denominated in SEK, DKK, NOK and EUR.
The addition of interest rate swaps and other OTC rates products complements the product portfolio of listed derivatives by capturing the market-observed correlation between existing standardized fixed income derivative contracts and interest rate swaps.
The clearing service for OTC Rates is part of the existing technical platform Genium INET and it’s supported by Nasdaq’s regulatory framework. The service supports both self-clearing for members and client clearing in the existing clearing model operated by Nasdaq.