BankingCorporate to Bank RelationshipsNASDAQ OMX Appoints BNY Mellon as Settlement Bank for CCP Clearing

NASDAQ OMX Appoints BNY Mellon as Settlement Bank for CCP Clearing

BNY Mellon has been selected by NASDAQ OMX, owner of the NASDAQ stock market and eight European stock exchanges, as one of its settlement banks for its central counterparty (CCP) clearing service in Europe.

The bank said that it will serve the needs of both the CCP and the buy-side clients, and support NASDAQ OMX’s settlements in US dollars, euros and sterling. As a result of new legislation including Dodd-Frank in the US and the European Market Infrastructure Regulation (EMIR) in Europe, many derivatives, credit default swaps (CDS) and interest rate swaps will migrate from trading over-the-counter (OTC) to through CCPs. BNY Mellon is working with clients and CCPs to ensure the efficient and timely processing of margin for these trades.

“BNY Mellon is a strong addition to our group of settlement banks which are providing clearing services on our European stock exchanges,” said Johan Rudén, newly appointed president of NASDAQ OMX Clearing AB. “This is central to our strategy of building a competitive model which will increase liquidity and lower costs for investors.”

Dominic Broom, head of Europe, the Middle East and Africa (EMEA) sales and relationship management, treasury services at BNY Mellon said: “The move to CCPs is a radical shift in the way the industry does business and we are at the forefront of this key regulatory change.

“In addition to providing settlement services for CCPs, we are also helping clients optimise and administer their collateral as part of the support we can offer them across the whole breadth of the investment lifecycle.”

NASDAQ OMX will implement its CCP clearing service with BNY Mellon in December 2013.

Related Articles

The effects of digital transformation on the bank–corporate relationship

Corporate to Bank Relationships The effects of digital transformation on the bank–corporate relationship

4d The Global Treasurer
Why Open Banking increases the need for enhanced security

Open Banking Why Open Banking increases the need for enhanced security

6d Eric van Vuuren
Mobile banking platform enhanced for treasurers

Banking Mobile banking platform enhanced for treasurers

2w Laura Noble
Liberis CEO on Open Banking and the future of SME funding

Open Banking Liberis CEO on Open Banking and the future of SME funding

2w GTNews
Two year technological forecast for European banks - an insiders account

Banking Two year technological forecast for European banks - an insiders account

4w Hans Tesselaar
The challenge that third party providers face: five important steps to becoming a TPP following PSD2

Open Banking The challenge that third party providers face: five important steps to becoming a TPP following PSD2

4w Tom Wijnen
Is disintermediation coming? A video case study into the emerging utility model

Banking Is disintermediation coming? A video case study into the emerging utility model

4w David Beach
What can banks learn from the TSB IT disaster?

Banking Risk Management What can banks learn from the TSB IT disaster?

1m Mark Hipperson