Monday, December 22, 2008

Equity Trader Alert #2008 - 134
NASDAQ OMX Completes Investment in International Derivatives Clearing Group; IDCG Gains CFTC Approval to Clear Interest Rate Swap Futures

Please Route To:

Head Traders; Technical Contacts; Compliance Officers; Options Contacts; Buy-Side Contacts

What you need to know:

• The NASDAQ OMX Group, Inc. announced today the completion of its 80% equity investment in the International Derivatives Clearing Group (IDCG).
• The Commodity Futures Trading Commission (CFTC) granted IDCG approval to clear OTC Interest Rate Swap (IRS) Futures Contracts and other Fixed Income derivatives contracts.

Who you should contact:

NASDAQ Market Sales at +1 800 846 0477

What is The NASDAQ OMX Group’s investment?

The NASDAQ OMX Group, Inc.^SM announced today the completion of its 80% equity investment in the International Derivatives Clearing Group (IDCG). Effective today, IDCG will become an independently-operated subsidiary of NASDAQ OMX^SM.

What has the CFTC approved?

Additionally, today the Commodity Futures Trading Commission (CFTC) granted IDCG approval to clear OTC Interest Rate Swap (IRS) Futures Contracts and other Fixed Income derivatives contracts.

With CFTC approval, IDCG plans to launch central counterparty clearing for IRS products. IDCG's subsidiary, International Derivatives Clearinghouse, LLC, will be the clearinghouse with U.S. regulatory oversight using NASDAQ OMX SECUR XT for clearing. The Philadelphia Board of Trade^® (PBOT), a recently acquired subsidiary of NASDAQ OMX, will be serving as the designated contract market (DCM) for the Interest Rate Swap Futures Products using NASDAQ OMX Click XT technology for matching.

By partnering with IDCG we are creating a highly efficient market to trade, clear and settle U.S. Dollar Interest Rate Swap futures.

What is the timing of the launch?

IDCG plans to launch the platform in the near future.

Where can I get additional information?

For additional information regarding IDCG:

• Refer to NASDAQ OMX’s press release on the IDCG Investment.
• Visit the PBOT webpage.
• Visit the IDCG website.

Who can I contact for additional information?

• Contact NASDAQ Market Sales at +1 800 846 0477.
• For information about PBOT, contact Daniel Carrigan at +1 215 496 5017.
• For information about IDCG, contact John Shay at +1 646 419 4561.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX’s acquisition of the Boston Stock Exchange. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX Group's control. These factors include, but are not limited to factors detailed in NASDAQ OMX Group's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.