Nasdaq says that Sweden, Finland guarantee support for orderly power trading
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STOCKHOLM, Sept 5 (Reuters) – The liquidity guarantees pledged by Sweden and Finland to support the Nordic power derivatives market will help support orderly trading at a time of extreme uncertainty, Nasdaq Nordic said on Monday.
The two countries announced plans on Sunday to offer up to $33 billion in guarantees to power companies and traders in their countries after Russia’s Gazprom ( GAZP.MM ) shut down the Nord Stream 1 gas pipeline, deepening Europe’s energy crisis.
Two-thirds of the money would be put up by Sweden and offered over the next two weeks to all Nordic companies trading electricity derivatives to prevent a collapse of the Nasdaq Clearing system, the Swedish government has said. Read more
Clearing house owner Nasdaq Nordic said in an email that it believed Nasdaq Clearing and its members were well prepared for dramatic market price movements, adding:
“We recognize that this is a time of extreme uncertainty and the addition of government liquidity guarantees will add an extra layer of stability to support orderly trading and energy companies.”
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Reporting by Anna Ringström, editing by Terje Solsvik
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