The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it has entered into a binding agreement to acquire a 22% equity stake in European Multilateral Clearing Facility N.V. (EMCF) from Fortis Bank Nederland (Holding) N.V.(FBN). EMCF is a central counterparty clearing house for European equity trading on exchanges and multilateral trading facilities, including NASDAQ OMX Europe Ltd., Chi-X Europe Ltd. and BATS Trading Europe Ltd. The transaction is subject to regulatory approval.
NASDAQ OMX's and FBNs' objective is to reinforce EMCF's position as the leading cash equity central counter party clearing (CCP) in Europe. To achieve this, the ownership structure of EMCF will be opened to a select number of order flow providers and financial institutions. This will further strengthen order flow to EMCF, accelerate EMCF's operation as an independent entity and enhance EMCF's financial capacity.
Bob Greifeld, Chief Executive Officer of NASDAQ OMX, said, "Traders in Europe today face a fragmented post-trade landscape. Investing in EMCF allows us to provide a cohesive clearing solution to our customers and a cost and risk-efficient clearing model. We are committed to our relationship with EMCF and will work with them to become the leading cash equity central counter party clearing facility in Europe."
"We are proud to announce this partnership as it strengthens the EMCF position as a leading European clearing house. The appointment as CCP for the Nordic markets underlines the strong competitive proposition of EMCF. EMCF proved that its offering is reliable, cost effective and that EMCF is capable of handling large transaction volumes. Being owned by multiple industry players will guarantee that EMCF will continue to deliver benefits to the market participants," said Jan Booij, Chief Executive Officer of EMCF.
As part of the transaction, EMCF will take a five percent stake in NASDAQ Clearing Corporation (NCC), formerly Boston Stock Exchange Clearing Corporation. As previously announced, NASDAQ OMX intends to operate NCC as an equities clearing agency in 2009 to guarantee trades, act as a CCP and provide continuous net settlement for U.S. equity securities.
In a separate news release today, NASDAQ OMX announced that central counterparty clearing will be introduced for its cash equity markets in Stockholm, Helsinki, Copenhagen and Iceland. A Memorandum of Understanding has been signed with EMCF to deliver clearing services to these Nordic markets.
