CCP clearing of OTC rate derivatives streamlines your clearing and reporting process.
Nasdaq Nordic offers clearing of interest rate swaps and overnight index swaps and forward rate agreements. We are authorized by ESMA to offer clearing services related to OTC interest rate derivatives denominated in SEK, DKK, NOK and EUR.
New! EUR denominated Interest Rate Swaps
Expanding our Interest Rate Swaps Offering
Introducing EUR denominated Interest Rate Swaps (IRS) - a dynamic product designed for efficient risk management. With a fixed rate and a floating rate based on a nominal amount, it allows market participants to navigate fluctuations in a more efficient and secure manner. Benefit from seamless clearing services and reliable valuation capabilities through Nasdaq Clearing's infrastructure.
Access is available to Clearing Members with a Default Management Commitment for EUR or through designated clearing brokers. Explore the benefits of Nasdaq's EUR denominated IRS for enhanced Interest Rate Management.
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- Danske Bank
- Svenska Handelsbanken
- Nordea
- Skandinaviska Enskilda Banken
- Swedbank
- Swedish National Debt Office
Cleared Products
Nasdaq offers clearing of interest rate swaps and overnight index swaps in EUR and SEK. The trade characteristics eligible for clearing for each class of swap are described below.
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- Fixed-Float
- Forward starting
- Front and/or Back Stubs
- Linear interpolation of stub periods
- IMM and EOM rolls
- Spread on the floating leg
- Negative float and fixed rates
- Initial Fixing Rate
- All relevant day count fractions
- Variable notional amounts and fixed rates
- Maturity up to 30Y
- Start day can be set per leg
- Backloading
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Clearing available for Overnight Index Swaps against the following indices: T/N STIBOR™, SWESTR and EuroSTR. Nasdaq supports Overnight Index Swaps with the following characteristics:
- All relevant day count fractions
- Daily compounding
- Maturity up to 10Y
- Spread on floating leg
- Fixed-Float
- Forward starting
- Front and back stubs
- Negative float and fixed rates
- Backloading
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Nasdaq provides clearing of OTC derivatives in the existing regulatory framework developed for derivatives clearing. The Rules and Regulations of Nasdaq Derivatives Markets govern Nasdaq Stockholm's derivative exchange and clearing activities.
The "derivative rules" comprise the rules and regulations that pertain to clearing of instruments with flexible features related to expiry and cash flow dates including the eligibility criteria for Clearing Members and Direct Pledge Customers wishing to clear these instruments, as well as a complete description of the contract specifications.
Instruments designated as "OTC Rates" are characterized by a wide range of alternatives, adding flexibility catering for the needs of our customers. This contrasts with the listed contracts where the expiry and cash flow dates are predefined and the two parties in a deal only agree on the price/yield. In order to distinguish between listed contracts and "OTC Rate contracts", Nasdaq has labeled "OTC" derivatives as Generic in the Rules and Regulations.
The latest version of the Rules and Regulations is always available on the Derivative Rules page. The Loss Sharing Rules are available in Appendix 17 in the Clearing Rules.
Key Benefits
Lower Regulatory Capital Costs
Comparatively lower regulatory capital costs to uncleared derivatives.
Infrastructure for Clearing OTC Rate Derivatives
Trade entry to Nasdaq Clearing is primarily done via MarkitWire, but trades can also be submitted via Clearing Workstation™ or through the OMnet API.
The service will provide you with matching and clearing of trades that are registered and a daily market valuation of the complete IRS portfolio.
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Trade entry to Nasdaq Clearing is primarily done via MarkitWire, but trades can also be submitted via Clearing Workstation™ or through the OMnet API.
The service will provide you with matching and clearing of trades that are registered and a daily market valuation of the complete IRS portfolio.
MarkitWire
Before sending a trade for clearing from MarkitWire, you can verify if the trade is eligible for clearing or not. The eligibility rules are based on the contract specification in the Nasdaq Nordic rules and regulations. The eligibility criterias are specified in MarkitSERV’s Documents and Download portal.
Onboarding
You must complete a specific admission form to allow Nasdaq Clearing to establish technical connectivity and mapping of MarkitWire BICs and clearing accounts. Contact our Member and Account Configuration team, who will assist you with the onboarding procedures.
NASDAQ OMX MarkitWire Onboarding Form
Before you submit trades for clearing, you must also inform MarkitSERV that it requires access to NASDAQ Clearing as a clearinghouse. This request should be sent to the MarkitSERV Client Services Team.
Connect to UAT system
In order for a member to test in the UAT system, the MarkitWire BIC must be mapped to the Nasdaq MPID. To request this mapping, contact Member and Account Configuration.
Access requests to Nasdaq test environments are made in the member portal.
Clearing Process
Step 1
The client and EB agree on a trade that is registered and affirmed through an affirmation platform.
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The client and EB agree on a trade that is registered and affirmed through an affirmation platform.
Step 3
An initial trade validation is carried out.
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An initial trade validation is carried out.
Contact our team
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Related Information
Membership
Fixed Income Membership
Step-by-step description on how to obtain a membership on Nasdaq Nordic Fixed Income markets.
OTC
Loss Sharing Pool
The Loss Sharing Pool is an incentive structure funded by all members that clears interest rate OTC derivatives with Nasdaq.