SuperDerivatives, a derivative pricing, data and risk management technology provider, has started offering Nasdaq OMX's London-based NLX derivatives market with independent settlement prices for illiquid interest rate derivatives.
Based on actual trades executed on NLX and equivalent trades in the over-the-counter (OTC) markets, SuperDerivatives will provide impartial and correct settlement prices and daily settlement prices, while supporting some final settlement prices for NLX futures products.
NLX provides an array of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro and sterling denominated listed derivative products.
SuperDerivatives interest rate derivatives head Robert Emerson said that traditionally, exchange-traded derivatives have been settled based solely on trades within that exchange.
This collaboration will create an interest rate derivatives settlement process, drawing data from both the OTC markets and the listed interest rate derivatives traded on the NLX market, Emerson added.
NLX CEO Charlotte Crosswell commented, "By using prices from both the NLX listed and OTC derivatives markets, we believe we offer our customers authentic and consistent settlement prices."
Nasdaq OMX owns and operates 23 markets, three clearinghouses and five central securities depositories in the US and Europe, supporting equities, options, fixed income, derivatives, commodities, futures and structured products.