Data Generic Image

    Approved Settlement Banks

    Banks approved for settlement with the clearing house

    Contact Us

    Cash transactions created in the collateral management system (CMS) through its cash optimization feature are executed in Nasdaq Clearing’s payment system. The payments system utilizes direct debit instructions and credit instructions to automate cash flows and to enable full straight through processing of cash transactions.

    To enable automated payments between the clearing participants and the clearing house through the payment system, each participant opens bank account(s) with one or more settlement banks approved by Nasdaq Clearing. Bank accounts will need to be set up for each eligible currency in which the participant is active.

    The below table lists approved settlement banks, the locations of their branches and applicable currencies for each branch.

    Cash transactions created in the collateral management system (CMS) through its cash optimization feature are executed in Nasdaq Clearing’s payment system. The payments system utilizes direct debit instructions and credit instructions to automate cash flows and to enable full straight through processing of cash transactions.

    To enable automated payments between the clearing participants and the clearing house through the payment system, each participant opens bank account(s) with one or more settlement banks approved by Nasdaq Clearing. Bank accounts will need to be set up for each eligible currency in which the participant is active.

    The below table lists approved settlement banks, the locations of their branches and applicable currencies for each branch.

    Approved Settlement Banks

    BankSwedenNorwayDenmarkFinlandUKUS
    Bank of New York Mellon     EUR, GBP, USD
    Barclays Bank PLC    EUR, GBP, USD 
    Danske BankSEKNOK, EURDKK, EUREURGBP 
    DNBSEKNOK, EURDKK  USD
    HandelsbankenSEK     
    NordeaSEKNOK, EUR*DKKEUR  
    SEBSEK, EURNOK, EURDKKEUR  
    SwedbankSEK, EUR     

    *: Only applicable for members trading commodities products.

    Full list of Approved Settlement Banks

    Requirements for Approved Settlement Banks

    This information describes the main requirements for a bank acting as an approved settlement bank for Nasdaq Clearing and conducting settlement for clearing participants other than themselves.

    Further requirements may apply as stated in the services agreement entered into between Nasdaq Clearing and an approved settlement bank.

    Service Agreement

    An approved settlement bank shall have a service agreement with Nasdaq Clearing specifying the terms and specifications of the cash settlement services provided by the settlement bank.

    Credit Rating

    An approved settlement bank shall have a credit rating of A- or higher in accordance with Standard & Poor's credit rating system or a credit rating of A3 or higher in accordance with Moody's credit rating system.

    Currencies

    A bank can be approved as settlement bank for one or several of the currencies applicable for settlement on Nasdaq Clearing's markets. The currencies for which a bank is approved are stipulated in the services agreement between the settlement bank and Nasdaq Clearing. A settlement bank will have access to central bank liquidity for applicable currencies.

    Technical Requirements

    An approved settlement bank shall be able to send and receive payment instructions and send payment confirmations and end-of-day statements through SWIFTNet according to the agreed specifications. All transactions for all message types shall be sent over SWIFTNet.

    Bank/TARGET2/CHAPS

    For payments in SEK, NOK and DKK, the settlement bank must be connected to and be able to execute payments through the currency’s respective central bank, the Swedish Riksbank for SEK and the Danish Nationalbank for DKK. For payments in EUR, the settlement bank must be connected and be able to execute payments through the TARGET2 settlement system. For payments in GBP, the settlement bank must be a direct member of CHAPS for connection to Bank of England.

    Cash Settlement Standing Settlement Instructions (SSI)

    For Nasdaq Clearing to be able to debit the participant’s accounts, the clearing participant authorizes the clearing house to issue payment instructions and the relevant settlement banks to debit the participant’s accounts in accordance with such instructions. Such authorizations are obtained for each bank account by the following arrangements:

    • under the Clearing Rules (or alternatively under a separate written and signed mandate), each participant authorizes Nasdaq Clearing to issue instructions to debit the participant’s bank accounts, and
    • by issuing a power of attorney (PoA) in favor of the settlement bank, the clearing participant authorizes the settlement bank to debit the participant’s bank accounts in accordance with Nasdaq Clearings instructions. The PoA must be signed for each currency participant settles in. Several currencies can be on the same PoA if a participant is using the same settlement bank for all those currencies. Cash Settlement SSIs are setup according to PoA documents that differs depending on the model used.

    For Nasdaq Clearing to be able to debit the participant’s accounts, the clearing participant authorizes the clearing house to issue payment instructions and the relevant settlement banks to debit the participant’s accounts in accordance with such instructions. Such authorizations are obtained for each bank account by the following arrangements:

    • under the Clearing Rules (or alternatively under a separate written and signed mandate), each participant authorizes Nasdaq Clearing to issue instructions to debit the participant’s bank accounts, and
    • by issuing a power of attorney (PoA) in favor of the settlement bank, the clearing participant authorizes the settlement bank to debit the participant’s bank accounts in accordance with Nasdaq Clearings instructions. The PoA must be signed for each currency participant settles in. Several currencies can be on the same PoA if a participant is using the same settlement bank for all those currencies. Cash Settlement SSIs are setup according to PoA documents that differs depending on the model used.

    Models Offered for Cash Settlement

    Settlement Bank Model


    Member chooses settlement bank and relevant branch depending on currency clearing member wants to settle in.

    The following PoA templates are available:

    • Nasdaq - Power of Attorney: Danske Bank, DNB, Handelsbanken, SEB or Swedbank to be used as a settlement bank.
    • Nasdaq - Power of Attorney (Nordea): Nordea to be used as a settlement bank.
    • Nasdaq - Power of Attorney (Barclays): Barclays to be used as a settlement bank.
    • Nasdaq - Power of Attorney (BNY Mellon): Bank of New York Mellon to be used as a settlement bank.

    Settlement Agent Model


    Member uses settlement agent for funding of daily cash settlement obligations.
     

    The following documentation should be provided to Nasdaq Clearing:

    • Nasdaq - Mandate (Settlement Agent): this form must be completed and signed by both the Clearing Member and the Settlement Agent.
    • Nasdaq - Power of Attorney Settlement Agent: this form must be completed and signed by both the Settlement Agent and the Settlement bank.

    Bank as Clearing Member


    Members that are approved settlement banks can use themselves as a settlement bank.
     

    The following documentation should be provided to Nasdaq Clearing:

    • Nasdaq - Mandate (Settlement bank as Clearing Member) must be signed by a settlement bank.
    Nasdaq Clearing Offering

     

    Nasdaq Clearing Offering ->

    Resource Center - Forms

    Related Information

    Governance, Policies and Regulations

    About Nasdaq Clearing

    Legal and regulatory information from and about Nasdaq Clearing AB.

    Learn more

    Settlement, Expiration and Delivery

    Settlement and Delivery

    Expiration and delivery procedures for derivatives contracts.

    Learn more

    Collateral Management

    Collateral Management

    Managing collateral for clearing on Nasdaq derivatives markets.

    Learn more