4 November 2015


Justin Schack

Managing Director    

Anish Puaar


Rosenblatt Securities Inc.    
New York +1 212 607 3100    

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.

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