Following the launch of Block Transactions for Freight and Fuel Oil contracts, the Exchange (NASDAQ OMX Oslo ASA) will introduce Exchange of Future for Swap (EFS) Transactions that will replace the existing NOS OTC transactions.
Effective date for implementation will be on the NOS Clearing ASA merger date into NASDAQ OMX Clearing AB, April 7th, 2014 subject to regulatory consent.
The existing Block Transaction and the new EFS Transaction are reported by Block Broker Members or Exchange Members to the Exchange before sent to clearing. The Transactions are regulated by the Trading Rules of the Exchange. Subject to the Transactions meeting relevant registration criteria, the Exchange will forward the transaction to clearing with NASDAQ OMX Clearing AB.
All existing NOS approved OTC Brokers for Freight and Fuel Oil are signed up as Block Broker Members and are authorized to report both Block Trades and EFS Transactions.
All Clearing Members have to use a Block Broker to report Block Trades or EFSs (unless they are Exchange Members) and need to have an Appointment Form in place with the Block Brokers. The existing Block Broker Appointment Forms will, by default, be transferred and applicable for both Block and EFS Transactions that will be cleared by NASDAQ OMX Clearing AB from April 7th, 2014.
The existing Block and the EFS/EFP Transactions are considered as Exchange Traded Derivatives (ETD) and not OTC derivatives under the new European Markets Infrastructure Regulation (EMIR) and the existing Block Transaction is considered as Futures under Dodd-Frank in the US.
Transparency – From the merger date all Tanker Freight Exchange Transactions will be published real time and Dry Freight and Fuel Oil Exchange Transactions will be published end-of-day on the NASDAQ OMX Commodities website. Affirmation – As transactions will be reported to the Exchange by pre-appointed Block Broker Members or Exchange Members, affirmation (trade details confirmation) will no longer be applicable.
More information regarding the upcoming trade reporting procedures can be found in the Transaction Type Service Description.
For further information, please do not hesitate to contact NOS Clearing:
Phone: +47 67 10 85 10