A general clearing member (GCM) is an entity that has been approved by the clearing house for clearing of principal transactions and client transactions on behalf of GCM clients.
A general clearing membership requires an exchange membership.
A general clearing member signing a general clearing membership agreement with the clearing house must be an entity with one of the following qualifications:
- A credit institution licensed in accordance with legislation implementing the Directive 2006/48/EC (Consolidating Banking Directive).
- An investment firm licensed in accordance with legislation implementing the Directive 2004/39/EC (Markets in Financial Instruments Directive).
- An entity holding a similar license from another jurisdiction approved by the clearing house Nasdaq Stockholm AB and Nasdaq Oslo ASA.
The general clearing member must hold all authorisations necessary under applicable laws for acting as such, and the general glearing member must be an exchange member of Nasdaq Oslo ASA.
The general clearing member is allocated clearing accounts with the clearing house in their own name for recording of clearing transactions. The general clearing member may register clearing transactions for the account of GCM clients, and for their own account.
The general clearing member is, without any limitations, entitled and responsible as counterparty to clearing house in respect of any and all transactions registered on the clearing accounts where the general clearing member is account holder.
GCM clients are the clients of the general clearing member. The GCM clients are not allocated clearing accountsat the clearing house in their own names, but will have their transactions recorded on clearing accounts established in the name of a general clearing member. The GCM clients will not become counterparty to the clearing house under such transactions, and no contractual relationship will arise between clearing house and the GCM client.
As exchange member of Nasdaq Oslo ASA the general clearing member may authorise GCM clients as its exchange traders to carry out exchange transactions to be registered on clearing accounts established in the name of the general clearing member. The general clearing member / exchange member retains all responsibility under the trading rules for the transactions executed by such
In connection with the introduction of the GCM model, Nasdaq Commodities is introducing a new exchange member category – non-clearing members (NCM). A general clearing member may authorise GCM clients that have entered into a non-clearing membership agreement with Nasdaq Oslo ASA to carry out exchange transactions to be registered on clearing accounts in the name of the general clearing member without further approval from the general clearing member. The non-clearing member will assume all responsibility under the trading rules for such transactions. The general clearing member must meet the requirements for clearing of the relevant transactions with the clearing house.
Clearing accounts and cash accounts
When approving a general clearing member, the clearing house will establish the following clearing accounts and portfolios with the general clearing member as account holder:
- Intraday account for preliminary registrations.
- General clearing account for principal transactions. Collateral calls will be calculated separately for general clearing accounts.
- Clearing client account for client transactions.
- Separate clearing client accounts for individual GCM clients if requested by the general clearing member or the clearing house.