Nodal Clear, LLC, the clearing house subsidiary of Nodal Exchange,
announced today that it has been recognized by the European Securities
and Markets Authority (“ESMA”) as a third-country central counterparty
(“CCP”) under the European Markets Infrastructure Regulation (“EMIR”).
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Under European law, third-country CCPs must receive recognition from
ESMA to be deemed a Qualifying Central Counterparty (“QCCP”). European
bank affiliated clearing members may receive favorable capital treatment
for their exposures arising from derivatives cleared though a CCP that
is considered a QCCP such as Nodal Clear.
“Recognition by ESMA will permit Nodal Clear to continue to provide
capital efficient risk management solutions to our clearing and trading
community,” said Paul Cusenza Chairman and CEO of Nodal Clear. “We
appreciate the regulators’ efforts in this process and look forward to
further participation from European clearing members in our markets.”
About Nodal Clear, LLC
Nodal Clear, LLC, the clearing house for Nodal Exchange, commenced
clearing Nodal Exchange contracts on October 19, 2015. Nodal Clear
serves as the central counterparty for all Nodal Exchange transactions.
Nodal Clear’s strong risk management practices create a sound market
infrastructure for trading Nodal Exchange contracts. Nodal Clear employs
a tailored portfolio margining methodology that appropriately margins
Nodal Exchange contracts and provides capital efficiencies to market
participants. Nodal Clear is a derivatives clearing organization (DCO)
regulated by the U.S. Commodity Futures Trading Commission (CFTC). Nodal
Clear, LLC is a wholly owned subsidiary of Nodal Exchange, LLC.
About Nodal Exchange, LLC
Nodal Exchange is a derivatives exchange providing price, credit and
liquidity risk management solutions to participants in the North
American energy markets. Nodal Exchange is a leader in innovation,
having introduced the world’s largest set of electric power locational
(nodal) futures contracts. Nodal Exchange currently offers over 1,000
contracts on hundreds of unique locations, providing the most effective
basis risk management available to market participants. In addition,
Nodal Exchange offers a Henry Hub natural gas contract providing
cross-margining benefits with participant’s power portfolios. All Nodal
Exchange contracts are cleared by Nodal Clear. Nodal Exchange is a
designated contract market (DCM) regulated by the CFTC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170331005554/en/
Copyright Business Wire 2017
Source: Business Wire
(March 31, 2017 - 11:42 AM EDT)
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