4 November 2015

Co-Authors

Justin Schack

Managing Director    

Anish Puaar

Associate    

Rosenblatt Securities Inc.    
New York +1 212 607 3100    

TRADING TALK
Rosenblatt's Market Structure News Digest (European Edition)

Nasdaq Nordic to Introduce Competitive Clearing on Nordic Cash Equity Markets
—Press Release

Nasdaq Nordic intends to provide a choice of CCP providers in Nordic cash equities for its members on the Nasdaq exchanges in Stockholm, Helsinki and Copenhagen.

Our Take: Nasdaq's commitment to clearinghouse interoperability was expected given that its incumbent clearer, EuroCCP (in which Nasdaq owns a 25% stake), has been at the forefront of advocating clearing choice in Europe. This move follows a similar commitment by the London Stock Exchange to allow clearing through EuroCCP from October 26. We understand that ABN Amro, which acts as a general clearing member for many proprietary trading firms in Europe and also owns a 25% stake in EuroCCP, is likely to switch clearing for UK stocks to EuroCCP from go-live, which could lead to a significant reduction in volumes cleared at LCH. Like the LSE, Nasdaq will allow members to clear equities through EuroCCP, SIX x- clear and LCH.Clearnet. Europe's other major exchange groups ? namely Euronext and Deutsche Börse ? are unlikely to embrace clearing choice until compelled by open access rules in MiFID II, which is set to come into force in January 2017.

If you wish to see the full article please click here.

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