1.1 Members are required to decide which type of arrangement they will have for clearing and settling their trades.
Members of the Nasdaq Nordic exchanges can execute trades that are cleared bilaterally or through CCP. The requirements for membership are dependent on the clearing solution. The general membership requirement for members is that appropriate clearing and settlement arrangements must be in place for the trades which are going to be executed.
To trade CCP instruments a member is required to be a participant of a CCP (Currently EMCF)
Please find more information about EuroCCP on: http://www.euroccp.com
- GCP (General Clearing Participant) – clears its own trades at the CCP as well as trades on behalf of other trading participant.
- DCP (Direct Clearing Participant) – only clears its own and its own customers trades at the CCP
- NCP (Non-Clearing Participant) – clears all its trades through a GCP and has no direct relationship with the CCP.
To trade bilaterally cleared instruments, a member is required to either be a member of the relevant Central Securities Depository (CSD) or to settle through a custodian bank.
1.2 Unregulated Firm or Regulated Firm
We welcome member applicants who are authorized by a European Financial Supervisory Authority (regulated members) and member applicants who are not authorized by a European, or equivalent, Financial Supervisory Authority (un-regulated members).
A Member shall possess equity capital equivalent to not less than €730 000. Nasdaq Nordic may choose to grant restricted membership which gives a Member the right to trade solely on its own account and exclusively instruments cleared and settled via a central counterparty to an applicant domiciled within the European Economic Area and that has equity capital equivalent to not less than € 50 000 .
Non-regulated members can only trade CCP cleared instruments. Nasdaq Nordic will need to ask EuroCCP for a Statement of Authority verifying that the member has clearing and settlement in place.