Nasdaq - The Center of the Swedish Fixed Income Markets
The majority of trading in Swedish fixed income products is done between banks (primary dealers) and institutional investors. The cash market includes corporate bonds & certificates, sustainable bonds, structured products, government bonds, retail bonds, municipality bonds and mortgage bonds.
Long-term interest rates are mainly traded in government bonds, mortgage bonds and forward/futures contracts for these bonds. The average daily notional of government bond forward and futures contracts cleared by Nasdaq Stockholm was 10BN in 2016. The average daily notional of cleared mortgage bond forward and future contracts was 4.2BN.
Short-term interest rates are mainly traded in IMM-FRA contracts and T-bills. Trading in short-term interest rates is also done in commercial papers, deposits and repos. During 2016, the average daily notional of cleared short-term FRA contracts was 21.2BN and the average daily notional of cleared RIBA futures contract was 6.7BN. The daily average notional of cleared REPO contracts in 2015 was 27.8BN.
Swedish Fixed Income Market
The Swedish Fixed Income Markets have several submarkets in Genium INET, Nasdaq’s trading system for fixed income products.
- The Electronic Interbank Market
Interbank Trading in 2, 5 and 10 year government bonds for primary dealers.
- The Indicative Markets
Instruments listed on the indicative markets are predominately directed to the institutional investor community and the trading is done OTC. The instruments listed on the indicative markets are either government bonds, municipality bonds, mortgage bonds or corporate bonds.
- The Retail Markets
Instruments on the retail market are usually traded electronically in smaller denominations. Some examples of retail traded instruments are corporate bonds, convertible bonds, structured products and government bonds. All trades in retail bonds are published on our website at www.nasdaqomxnordic.com/bonds/sweden.
Nasdaq also delivers other marketplace services to the Swedish Fixed Income market, including: