Role of the clearing house

NOS Clearing ASA is a central counterpart clearinghouse (CCP) regulated by the Norwegian Ministry of Finance and under supervision of Finanstilsynet, the Norwegian FSA. The CCP business is strictly regulated by law and ensures that netting and settlement are legally protected and guaranteed while legal risks are low.

As a clearing house, NOS acts as a central counterparty (CCP) between the contract parties and becomes the seller to the buyer and buyer to the seller. This means that the clearing house enters into the contract between the buyer and the seller and becomes the counterparty to both parties in the transaction, ensuring the fulfilment of the contractual obligations. The clearing house ensures that it can meet its obligations through collecting collateral (margin) from both the buyer and the seller.

Income from clearing is generated through the collection of clearing fees.

As central counterparty, NOS:
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• Participates as counterparty in every transaction, which is commonly referred to as a “counterparty undertaking”.
• Monitors the market and market participants.
• Reduces the number of transactions due to payments netting.
• Provides secure and standardised transaction processing.
• Calculates, collect and controls pledged collateral.
• Makes the work in our members credit, back office and risk management departments more efficient