Clearing members are required to have one or more collateral accounts per clearing service, unless collateral is provided through an approved on demand guarantee. For derivatives clearing, end clients are encouraged to hold collateral accounts that are linked to their individual clearing accounts.

For clearing of equities, the clearing members are required to hold at least one account dedicated to hold their contribution to the Clearing Fund. Please also refer to the chapter on the Clearing Fund.

The common way of providing collateral is by pledging collateral towards Oslo Clearing. Clearing members that want to transfer cash collateral directly to Oslo Clearing can do so through the solution set up with JP Morgan.

Eligible collateral

Cash

a) Equity Clearing

Cash can be deposited and pledged in one of the following institutions:

• DnB NOR Bank ASA
• Fokus Bank
• Nordea Bank Norge ASA

Cash can be posted to Oslo Clearing in the following institution:

• JP Morgan Chase Bank

 Applicable currencies are: NOK, SEK, DKK, USD, EUR and GBP. The applicable haircuts on currencies can be found here:

Each clearing members is responsible for the interest terms on their accounts. For cash posted with Oslo Clearing, the interest terms are:

The interest is calculated daily and paid monthly to the clearing member on the first business day of the subsequent month.

b) Derivatives Clearing

Cash (NOK) can be pledged on individual accounts. Approved collateral banks 

Financial Instruments

Clearing members use financial instruments (equity market instruments, interest rate instruments and UCITS)as collateral in accordance with the list of approved instruments.

Equity market instruments as margin collateral in both clearing services are used in the calculation of the margin, and thus contribute to a reduction of the margin requirement. Equity market instruments are not accepted as collateral for the Clearing Fund contribution.

Financial instruments must be held on a account held at Verdipapirsentralen ASA (VPS), or at Clearstream Bank Luxembourg S.A., pledged to Oslo Clearing.

For derivatives clearing, clearing members may use a pledged securities account at Svenska Enskilda Banken AB (SEB).

Guarantees

Guarantees used to cover margin requirements can only be issued by approved credit institutions with A- rating (S&P, or a corresponding rating from Moody's or Fitch) or higher. The creditworthiness of the guarantor and the guarantee are subject to approval by Risk Management and Legal Counsel of Oslo Clearing.

Guarantee text templates can be found here