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IT – INET Nordic – NASDAQ OMX Nordic introduces segments for Exchange Traded Notes

SVEZIA

IT – INET Nordic – NASDAQ OMX Nordic introduces segments for Exchange Traded Notes as of May 23, 2011 ..


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            NASDAQ OMX exchanges in Stockholm, Helsinki and Copenhagen will introduce new segments for Exchange Traded Notes (ETNs) to enhance NASDAQ OMX Nordic structured product offering.

            Background

            The current market segments for structured products are “Fund units”, “Warrants” and “Certificates”. Part of the instruments on the current Certificates segments are today perceived as Exchange Traded Notes. Therefore, new Exchange Traded Notes segments will be created and those instruments classified as ETNs will be transferred to the new segments. Certificates segments with certificate instruments remain in INET system.

            ETN definition

            An ETN is a debt obligation, note, issued by a bank. The ETN is similar to ETFs in their construction however the ETN are more flexible in how the assets are allocated, compared to a fund. An ETN mirrors the return of assets such as stocks, bonds, futures, commodities, currencies or similar products, or combinations thereof, and which may or may not try to replicate an index. They are open-ended or with maturities exceeding 5y and with a symmetric return. They are cash settled at expiration.

            INET identifiers

            Instrument Type and Instrument Subtype ETNs use Instrument Type Warrants and subtype Certificates in INET Nordic system.

            For Stockholm and Helsinki Exchange Traded Notes segments, existing segment numbers 158 and 157 will be used and renamed. For Copenhagen, a new segment will be created.

            Market segments

            Exchange / MIC Segment name Seq.no
            NASDAQ OMX Stockholm / XSTO OMX STO Exchange Traded Notes  Name change! 158 [1]
            0NASDAQ OMX Helsinki / XHEL OMX HEL Exchange Traded Notes  Name change! 157 [2]
            NASDAQ OMX Copenhagen / XCSE OMX CPH Exchange Traded Notes 196 NEW!

            [1] This segment has currently no active orderbooks.
            [2] This segment is currently not active.

            Turnover lists and List Populations

            MIC List name ID List population ID
            XSTO Exchange Traded Notes SEK 124610 NEW! ETNs Stockholm 123652 NEW!
            XHEL Exchange Traded Notes EUR 124611 NEW! ETNs Helsinki 123653 NEW!
            XCPH Exchange Traded Notes DKK 124612 NEW! ETNs Copenhagen 123654 NEW!

            Order books to be transferred from current Certificates segments to new ETN segments are presented in the excel sheet attachment. Order book id’s will be retained.

            Market access

            All exchange members who currently are connected to Certificates segments on respective exchanges will automatically have trading access to the Exchange Traded Notes segments as of May 23, 2011.

            Retrieval of member private trade info

            Members whose INET Drop filters currently include market segments where ETNs are traded will have their drop ports automatically updated by NASDAQ OMX to cover also the corresponding new segment(s).

            Market model

            ETN segments market model follows the market model of Certificates segments in respective exchanges. INET Nordic Market Model will be updated to reflect the new setup.

            Clearing

            Executed trades will be bilaterally cleared in local CSDs.

            Time schedule

            2011-04-27: Setup is available in external test system INET OTF/GCF4.
            2011-05-23: Planned launch date in INET Nordic production system.

            Source: ETFWorld – NASDAQ OMX Nordic

             

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