These excerpts taken from the NDAQ 10-K filed Feb 27, 2009.
We are exposed to counterparty risk for all transactions that are cleared through our markets.
We clear a range of equity-related and fixed-income-related derivative products. We assume the counterparty risk for all transactions that are cleared through our markets and guarantee that our cleared contracts
will be honored. We enforce minimum financial and operational criteria for membership eligibility, require members and investors to provide collateral, and maintain established risk policies and procedures to ensure that the counterparty risks are properly monitored and pro-actively managed; however, none of these measures provides absolute assurance against defaults by our counterparties on their obligations. No guarantee can be given that the collateral provided will at all times be sufficient. Although we maintain clearing capital resources to serve as an additional layer of protection to help ensure that we are able to meet our obligations, these resources may not be sufficient. In addition, our high leverage could limit our flexibility in the operation of our clearing business.
We are exposed to counterparty risk for all transactions that are cleared through our
We clear a range of equity-related and
STYLE="margin-top:0px;margin-bottom:0px">We are exposed to credit risk from third parties, including customers, counterparties and clearing agents. STYLE="margin-top:0px;margin-bottom:-6px">
We are exposed to credit risk from third parties, including customers,
Our subsidiaries, Nasdaq Execution Services and NASDAQ Options Services may be exposed to credit risk, due to the default of
FACE="Times New Roman" SIZE="2">In addition, through our NASDAQ OMX Stockholm clearing operations, we act as a counterparty in each transaction and thereby guarantee the fulfillment of each contract. We are required to pledge collateral for
We also have credit
Credit losses such as those described above could adversely affect our