The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announces that NASDAQ OMX and the Bond Exchange of South Africa Ltd, (BESA) have signed agreements regarding the provision of post trading administrative services and a central counterpart (CCP) for the derivatives market that BESA will establish. The agreements include the establishment of BondClear, a South African entity, which together with NASDAQ OMX will provide derivatives clearing services for the South African fixed income derivatives market. Subject to regulatory and other stakeholder approvals, BondClear will become operational during early 2009.
The clearing offering will be based on NASDAQ OMX's operational model for the OMX Nordic Exchange, and will bring international best practice standards to the South African financial market. With NASDAQ OMX acting as CCP, BondClear will be able to provide the South African market participants with a counterpart whose credit rating exceeds what is currently available in South Africa, hence ensuring minimum capital allocation for the market.
"We are delighted to be selected as preferred partner to BESA for this strategically important project, and we look forward to working together with BESA to realize their vision. The BondClear partnership reaffirms NASDAQ OMX's business model, where the combination of technology solutions, our home market operations and our global customer base creates a unique value offering for BondClear and the South African financial market," said Magnus Bocker, President of NASDAQ OMX.
"BondClear is a key structure for BESA to realize its vision, and execute our new strategy; additionally it will allow us to bring a new standard for post trade services to the South African market. The outlined partnership with NASDAQ OMX will bring proven, world class technology as well as best practice operational services to the South African market. Furthermore, we are excited by the partnership's ability to enable us to pierce the country's credit ceiling and tap into the huge, London-based off shore market for South African instruments," said Garth Greubel, CEO of BESA.
