As previously communicated in IT Notices (71/14) and (77/14) , NASDAQ OMX Nordic will launch Sold-Out Buy-Back (SO) functionality for Warrants, Certificates and Exchange Traded Notes (ETN). The functionality will be available on NASDAQ OMX Copenhagen, Helsinki and Stockholm. Although Sold-Out Buy-Back will be launched in production on September 15, 2014, it can start to be used from September 22, 2014. Sold-Out Buy-Back has been available for testing in INET OTF and GCF4 as of August 18, 2014.
The functionality is optional for issuers and can be used in exceptional circumstances where the instrument has been sold-out. However, as the Sold-Out Buy-Back will impact other participants’ ability to send in orders, all participants active in the Warrants, Certificates and Exchange Traded Notes segments should evaluate the impact on their systems.
The start of the Sold-Out Buy-Back is indicated by the dissemination of the note code for the impacted order book through the “Order Book Directory” message in ITCH.
The end of the Sold-Out Buy-Back and the removal of the Note Code lead to ITCH relaying an “Order Book Directory” message with an updated Note Code field for the order book.
Protocol changes
OUCH:
A new value is added to the Reason field of the Rejected Order Message (section 2.2.6):
- Reason = “I” - Invalid Side
The new reject Reason will be used during Sold-Out Buy-Back when:
- A client sends a buy order and;
- A market maker sends a sell order.
TotalView-ITCH:
A new value is added to the Note Codes field of the Order Book Directory message (section 4.3.1):
- 2 097 152 = “SO” - Sold-Out Buy-Back
The new Note Code will be used to indicate that a symbol is subject to Sold-Out Buy-Back rules.
GCF TIP:
In TIP, the note code is relayed through the Basic Data Tradable message BDt or intraday in the real-time Notification message NOt.
Protocol specifications
Next versions of INET protocol specifications are available at the NASDAQ OMX Technical Information website, under INET Nordic Future Protocol Specifications .
Time plan
The Sold-Out Buy-Back functionality is planned for launch:
- INET Test (OTF), GCF 4 – available as of August 18, 2014
- INET Production – September 15, 2014
- Please note that although the new node code will be implemented on September 15, it will start to be used from September 22, 2014
INET Nordic Market Model
The changes will be reflected in the Market Model valid from September 22, 2014.
If you have any questions regarding this Exchange Notice, please contact NASDAQ OMX Tech Support at: +46 8 405 6410, operator@nasdaqomx.com .
NASDAQ OMX Nordic is not legal entity but describes the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm and Iceland.
