Swedish National Debt Office participates in pilot project for reduced financial risks

22 June 2010 - Press release

NASDAQ OMX has launched a pilot project together with SEB and the Swedish National Debt Office for central counterparty clearing (CCP) of interest rate swaps (IRS) in Swedish kronor. NASDAQ OMX has also initiated a strategic dialogue with all major swap dealers in Sweden, with the aim to build a full scale clearing house for IRS in SEK.

An increased usage of CCP will reduce the systemic risks in the financial system: counterparty risks will be reduced and transparency as well as clarity will increase. Not least, it will be possible to handle any counterparty failure in a more efficient manner.  In addition, CCP would hopefully enhance greater competition.

The Debt Office is positive to a development where swaps may be offered for CCP clearing. Today counterparty risks are spread out in an opaque system of bilateral agreements with bilateral exchanges of collateral.

The Debt Office has taken part in the pilot project to encourage the development of a CCP.  A creation of a Nordic alternative to international clearing houses is also positive. We find it important that CCP will be brought about and we hope that all major swap dealers in the Swedish market will participate.

For more information, please contact:

Maria Norström, Head of Funding, +46 8 613 46 35