Based on issuer requests, Nasdaq Nordic is planning to enhance the “Soft Knock” functionality currently in place for Warrants, Certificates and Exchange Traded Notes (ETN) on Nasdaq Copenhagen, Helsinki and Stockholm. The enhancement will enable the start and end of the Soft Knock to take place within the same trading day. The change is planned for INET production from January 18, 2016 and will be available for testing in INET OTF and GCF- EXT2 and EXT4 as of December 22, 2015.
Details
Soft Knock is an optional functionality for issuers of Warrants, Certificates and Exchange Traded Notes. Where a certain barrier level is reached, the issuer may request the instrument in question to be placed in Soft Knock by Nasdaq Nordic. The barrier level will be detailed in the final terms or other official documentation for the instrument.
Under current Soft Knock functionality, the order book in Soft Knock can be released from Soft Knock and “Trading Halt – Knock Out” earliest the following trading day. The planned enhancement is to allow the Soft Knock event to end intraday, such that a Soft Knock can start and end within the same trading day.
As previously, the start of the Soft Knock 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 Soft Knock 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. In TIP, the Note Code is relayed through the Basic Data Tradable message BDt or intraday in the real-time Notification message NOt.
INET identifiers:
Market segments impacted by the enhancement:
| Exchange / MIC | Segment name | Segment symbol | Currency | Seq. no | GCF ID |
| XSTO | OMX STO Warrants | SEEQ WAR | SEK | 4 | 21 |
| XSTO | OMX STO Certificates | SEEQ CERT | SEK | 160 | 256 |
| XSTO | OMX STO Exchange Traded Notes | SEEQ COM | SEK | 158 | 264 |
| XHEL | OMX HEL Covered Warrants | FIEQ WAR | EUR | 64 | 93 |
| XHEL | OMX HEL Certificates | FIEQ CERT | EUR | 159 | 258 |
| XHEL | OMX HEL Exchange Traded Notes | FIEQ COM | EUR | 157 | 456 |
| XCSE | OMX CPH Warrants | DKWA WAR | DKK | 167 | 308 |
| XCSE | OMX CPH Certificates | DKWA CERT | DKK | 168 | 310 |
| XCSE | OMX CPH Exchange Traded Notes | DKEQ COM | DKK | 357 | 458 |
Protocol specifications
No protocol changes. This enhancement is purely a change in the allowed reactivation time after a Soft Knock event.
Current versions of INET protocol specifications are available at the Nasdaq Nordic Technical Information website, under INET Nordic Protocol Specifications .
Implementation schedule
Time schedule The Soft Knock enhancement is planned for launch:
- INET Test (OTF), GCF- EXT2 and EXT4 – December 22, 2015
- GCF Production – January 18, 2016
- INET Production – January 18, 2016
Documentation
INET Nordic Market Model: Nasdaq Nordic Market Model entering into force on January 18, 2016 will reflect this change. The current and future version of the Market Model can be viewed at www.nasdaqomx.com/nordicrules .
Support
For technical questions, please contact Nasdaq Cash Equity Operations: Tel: +46 8 405 6410, E-mail: operator@nasdaq.com
Intraday Soft Knock start/end in OTF can be requested by contacting operator@nasdaq.com . Best regards, Nasdaq Nordic “Nasdaq Nordic” is not a legal entity but represents the common offering by Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, Nasdaq Iceland hf. and Nasdaq Stockholm AB.
