NASDAQ OMX Nordic: Nasdaq Clearing - 2nd Notice on Automation of Default Fund Payments

Nasdaq Clearing is implementing automatic calls and releases of Default Fund
contributions (including Loss Sharing Pool) on 2021-12-01. 


The automation of calls and releases of Default Fund contributions will ensure
timely settlement of changes in Default Fund requirements and allow automatic
release of callbacks for eligible funds. In the case of a deficit, a direct
debit instruction will be automatically executed to cover the shortfall and in
the case of a surplus a credit instruction will be automatically executed
(subject to the settings on each account). 


Clearing members will still be able to instruct transfers of eligible funds to
and from their Standing Settlement Instructions (SSIs) for the Default Fund
outside the automated flow. In addition, clearing members will be able to
adjust the callback limit in the CMS Web application to prevent automatic
repayment of excess eligible funds. 


SSIs and Power of Attorneys
As communicated in the previous market notice, the change required setting up
new SSIs for the Default Fund for which Nasdaq Clearing would have a Power of
Attorney. These SSIs are now by default set up from the existing house account
SSIs used for daily Cash Optimization payments unless a separate request for
setting up a new PoA was received. 



Reports
Automated Default Fund payments will be presented in the Cash Optimization
report. Examples of such reports with Default Fund payments included are
available on Q-port or Clearing Workstation External Test System 1 (EXT1). 



Callback Limits
Initially, all Default Fund accounts will be set up with a maximum callback
limit to prevent automatic repayment of any surplus eligible funds to the new
SSIs for the Default Fund. Clearing members will be able to adjust or remove
the callback limit the same way as for Collateral custody account via the CMS
Web application (Cash Optimization -> Settings). 


Timeline
Automated Default Fund transactions will follow current Cash Optimization
timeline. 

Information

For questions, please contact: [e-mail], [phone].

For requests of new SSIs or Power of Attorneys, please contact:
[e-mail].