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: clearing@nasdaq.com, +46 8 405 6880. For requests of new SSIs or Power of Attorneys, please contact: NordicMemberships@nasdaq.com.
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