Reported by Securities Lending Times:
NASDAQ OMX Derivatives Markets is making a number of changes to its list of eligible collateral, announcing that further changes will be made in connection to the implementation of its collateral management solution in March 2013.
The below edits to appendix 12 and 12a will come in to force on 2 January 2013.
Clarifications:
1. All securities accepted as collateral shall have daily prices available via Reuters, Bloomberg, SIX or another information distributor approved by NOMX DM. If daily prices are missing, the security shall be valued at zero.
2. NASDAQ OMX DM does not allow as collateral securities or bank guarantees issued by the member/customer itself, or by a company within the same group of companies as the member/customer.
Changes:
1. Only government bills and fixed rate, unstructured and dated government bonds issued by the governments of; Sweden, Denmark, Finland, Norway, Germany, The Netherlands, Austria, France, United Kingdom and the United States are accepted as collateral. The government bills and fixed rate bonds must be denominated in the local currency of the issuing country.
2. Only index linked bonds issued by the government of Sweden and denominated in SEK are accepted as collateral.
3. Norwegian government bonds and bills can be posted up to an unlimited amount.
4. Only Swedish and Danish fixed rate and unstructured covered bonds issued by eligible institutions with a rating of AAA (S&P) and/or Aaa (Moody’s) are accepted as collateral. Swedish issuers of eligible covered bonds shall fulfill the criteria of “Lag (2003:1223) om utgivning av säkerställda obligationer”. Danish issuers of eligible covered bonds shall fulfill the criteria of “the Danish Business Act (Consolidating Act no. 705 of 25 June 2012)”. Swedish Covered Bonds shall be denominated in SEK and Danish Covered Bonds shall be denominated in DKK.
5. Swedish, Danish and Finnish bank bonds will no longer be accepted as collateral.
6. Only fixed rate and unstructured Kommuninvest bonds denominated in SEK are accepted as collateral.
7. Only shares included in the following indices are eligible as collateral; OMXS30, KFX (OMXC20), HEX25 (OMXH25) and OBX (OBX25). The maximum amount that can be posted per issuer (per member/customer) is 200 MSEK, 180 MDKK, 180 MNOK or 20 MEUR as specified in Appendix 12. Mid cap shares and large cap shares not included in the indices mentioned are no longer eligible as collateral. This will make Appendix 12a obsolete.
Author: Georgina Lavers