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Post-Trade Arrangements

Nasdaq Nordic Post-Trade Arrangements in Cash Markets

Nasdaq Nordic offers trading in financial instruments on the Stockholm, Helsinki, Copenhagen and Iceland markets. The individual market segments are cleared and settled either through a Central Counterparty (CCP), or they are settled on a gross basis.
 

Central Counterparty Clearing

Financial instruments currently CCP cleared:

  • Nasdaq Copenhagen: OMXC20, Large Cap and Mid Cap shares
  • Nasdaq Helsinki: OMXH25, Large Cap, Mid Cap and Small Cap shares, and ETFs
  • Nasdaq Stockholm: OMXS30, Large Cap and Mid Cap shares and ETFs; Norwegian ETFs
  • First North Sweden: Market segment for Norwegian shares

Instrument’s clearing arrangement is provided in electronic format as part of the basic data messages via GCF-TIP feed and reference data files. 

To obtain the current list of CCP cleared instruments in excel, please email us.

Nasdaq Nordic supports competitive central counterparty model with interoperating CCPs, which allows members the choice of a CCP from EuroCCP N.V., LCH.Clearnet Ltd and SIX x-clear Ltd. Please find more information about CCPs:

To trade CCP instruments a member is required to be a participant of a CCP, either directly or indirectly:

  • GCP (General Clearing Participant/ General Clearing Member/ Global Clearing Member) - clears trades on behalf of other exchange members (NCPs) at a CCP. Also may clear its own and its own customers trades at a CCP if it is an exchange member.
  • DCP (Direct Clearing Participant/ Direct Clearing Member/ Individual Clearing Member) - only clears its own and its own customers trades at a CCP.
  • NCP (Non-Clearing Participant/ Non-Clearing Member) - clears all its trades through a GCP and has no direct relationship with the CCP. NCP has no contractual relationship with a CCP.

Nasdaq Nordic will ask a CCP for a form verifying that the member has clearing arrangements in place. 

Gross Settlement

Trades in all other financial instruments on Nasdaq Nordic exchanges are gross settled.

When a market segment is gross settled, it means that the two trading members settle against one another at the relevant Central Securities Depository (CSD). Nasdaq member can either be a direct member of the relevant CSD or arrange for indirect settlement capabilities via one of the clearing members of the relevant CSD.

Membership of Nasdaq Nordic Exchanges

Members of the Nasdaq Nordic exchanges can execute trades that are cleared and settled through a CCP or settled on a gross basis. Requirements to obtain membership depend on the chosen solution. The general membership requirement for members is that appropriate clearing and settlement arrangements must be in place for trades that are to be executed. For more information on membership, please see Membership and Services

Self Clearing

Members have the option to exclude internal trades (trades where a member is both the buyer and the seller) from CCP clearing and settlement and gross settlement. This function is known as Self Clearing and implies that no execution report is sent from the exchange to the CSD and/or CCP.

This function is selectable within the exchanges trading system, INET Nordic, for both CCP and gross settled instruments. The member can select Self Clearing per clearing solution and Exchange when it comes to auto-matched trades. For example, a member can select to have CCP cleared trades Self Cleared in Finland and non-CCP cleared trades sent to the CSD in Finland while Self Clearing all trades in Denmark.

For reported trades where the member is both the buyer and the seller, the member can choose to self clear on a per trade basis. The default is set to NOT self clear, therefore, if a member wishes to self clear, the indicator for self clearing must be set for each trade.

The decision to self clear needs to be agreed with the clearing participant responsible for the clearing and settlement for the member. A form (available from the member’s Key Account Manager) needs to be filled in and sent to Nasdaq.

To be eligible for Self Clearing at Nasdaq Helsinki, the member must send in the following:

  • Statement of the member’s agreement with its custody service provider on the handling of the clearing and settlement arrangements for the members’ self cleared trades.
  • Description of how the member will direct Self Clearing trades to its custody. 

This information should explain and illustrate how the investor is ensured to receive the financial instruments when Self Clearing is used by the member and not through the allocation at the CSD

 


 

Buy In

When a settlement fails, the party to receive the securities is entitled to call for a buy in. Buy in for CCP cleared instruments is handled by the relevant CCP according to its procedures while buy in for gross settlement is governed by the Nordic Member Rules. The Nasdaq specific rules and procedures related to buy in can be found on the Nordic Rules page under Member Rules »

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