Nasdaq Clearing and Nasdaq Commodities have today been in touch with members and other key stakeholders explaining the current situation and the process going forward. That process includes the replenishment of the default fund, which has been impacted by an amount of EUR 107 million in addition to the EUR 7 million that was Nasdaq’s junior capital.
The defaulted portfolio contained a large spread position between Nordic and German Power that was negatively impacted by extraordinary fluctuation in the spread between the German and Nordic Power markets. When the member, Einar Aas, no longer could meet the margin requirement due to the losses in the portfolio, Nasdaq Clearing had to close out the portfolio.