OMX Nordic Exchange Stockholm AB (OMX STO) is the central marketplace for trading in, among other things, equities, fixed income securities and derivatives instruments in Sweden. OMX Derivatives Markets (OMX DM) is the secondary legal name of OMX STO and is used for operations involving trading and clearing of derivatives instruments.1
OMX DM is the central counterparty in clearing standardised derivatives instruments traded on OMX. In its capacity as central counterparty, OMX DM assumes risks and OMX DM is therefore of interest to the stability of the financial system.
The Riksbank (Sweden’s central bank) and Finansinspektionen (the Swedish Financial Supervisory Authority) have judged OMX DM’s central counterparty clearing to be systemically important, which means that the operation is significant to the stability of the financial system. The assessment is being done on the basis of the recommendations drawn up by the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) found in Recommendations for Central Counterparties.2 These recommendations aim at providing a comprehensive standard for assessment of the management of various kinds of risks by a central counterparty.
1 A secondary legal name is not a legal person but refers to a certain part of a company’s operations. A subsidiary is registered with the Swedish Companies Registration Office.
2 CPSS-IOSCO Recommendations for Central Counterparties, BIS, November 2004.
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