The Bank of New York Mellon has made a strategic minority investment in clearing firm International Derivatives Clearing Group, which is majority owned by Nasdaq OMX.

The firm, which is an independently operated Nasdaq subsidiary, serves as a designated clearing organization for 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 Bank of New York Mellon’s securities servicing products, including margin and collateral management, the firms said.

“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 BNY 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, CEO of Nasdaq, added, “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.”

IE