The Bank of New York Mellon Makes Strategic Investment in International Derivatives Clearing Group

PRNewswire
NEW YORK
(NYSE:BK)
Jun 30, 2009

The Bank of New York Mellon & IDCG to Provide Clients with Efficient OTC Derivatives Clearing Solutions

NEW YORK, June 30, 2009 — The NASDAQ OMX Group, Inc. (NASDAQ: NDAQ), the world's largest exchange company, and The Bank of New York Mellon (NYSE: BK), the global leader in securities servicing and asset management, jointly announced that The Bank of New York Mellon has made a strategic minority investment in International Derivatives Clearing Group (IDCG). IDCG is a majority owned, independently operated NASDAQ OMX subsidiary that serves as a designated clearing organization for clearing and settling interest rate swap contracts and other fixed income derivatives contracts. Financial terms of the deal were not disclosed.

In addition to the equity stake, IDCG will utilize The Bank of New York Mellon's securities servicing products, including margin and collateral management. This will provide clients of both firms with immediate solutions that meet their end-to-end OTC derivatives clearing and processing needs, which are critical to addressing current regulatory and infrastructure challenges.

"This strategic partnership with NASDAQ OMX provides our buy side and sell side clients with a flexible platform that meets their derivatives trading, clearing and servicing needs," said Gerald Hassell, President of The Bank of New York Mellon. "We will continue to support the development of market infrastructure that enhances the transparency and stability of the global financial markets by addressing counterparty and systemic risk concerns."

Bob Greifeld, Chief Executive Officer of NASDAQ OMX said, "NASDAQ OMX is pleased to have partnered with a global institution such as The Bank of New York Mellon that shares our vision to provide efficient derivatives clearing using a central counterparty system, one that reduces credit risk in the large OTC interest rate swap market. The timing of this strategic investment reinforces the strength of our clearinghouse model. It also lends support to President Obama's proposed reforms of the OTC derivatives market."

Chris Edmonds, CEO of IDCG added, "This investment in IDCG by The Bank of New York Mellon is another important and timely step in the strategic growth of our Company. We look forward to working with The Bank of New York Mellon and maximizing their OTC derivatives offering as IDCG evolves."

As part of the investment, Art Certosimo, Senior Executive Vice President and CEO of Broker-Dealer Services and Alternative Investment Services for The Bank of New York Mellon, will join the board of IDCG.

About the International Derivatives Clearing Group

The International Derivatives Clearing Group (IDCG) is an independently operated subsidiary of NASDAQ OMX that serves as the designated contract market (DCM) for the Interest Rate Swap Products using NASDAQ OMX Click XT technology for matching. IDCG's subsidiary, International Derivatives Clearinghouse, LLC, will be the clearinghouse with U.S. regulatory oversight using NASDAQ OMX SECUR XT for clearing.

About The Bank of New York Mellon

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $19.5 trillion in assets under custody and administration, $881 billion in assets under management, services nearly $12 trillion in outstanding debt and processes global payments averaging $1.8 trillion a day. Additional information is available at www.bnymellon.com.

About the NASDAQ OMX Group

The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with over 3,900 listed companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market: NASDAQ OMX Nordic; NASDAQ OMX Baltic, including First North; and the U.S. 144A sector. The company offers trading across multiple asset classes, including equities, derivatives, debt, commodities, structured products and ETFs.

NASDAQ OMX Group technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com.

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 Market and NASDAQ OMX Group's other products and offerings. 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.