This is to inform you of upcoming amendments to the Trading and Clearing Rules of Nasdaq Commodities markets that will come into effect on November 21.
The following documents are affected:
- Joint Trading and Clearing Appendix 2 – Contract Specifications
- Joint Trading and Clearing Appendix 6 – Market Conduct Rules
- Joint Trading and Clearing Appendix 7 – Fee List
Amendments to Joint Appendix 2 – Contract Specifications
New Nordic Electricity option contracts
To complement the offering of Future contracts in the Nordic power market, new yearly and quarterly option contracts will be introduced. These are European style option contracts with futures as the underlying contracts. The new contract specifications are added under Part D sections 1.44 and 1.45 (p. 142 ff) and the contracts have been added to the quotation list under Part C section 1.5 (p. 40).
Contract base for German, Dutch, French and Belgian electricity contracts
Under the individual contract specifications for the German, Dutch, French and Belgian electricity contracts, the contract base has been amended to reflect that the calculations of contract base is done by Nasdaq based on the hourly prices of the respective day ahead auctions. The following individual contract specifications are affected: sections 1.1. Belgian Power Monthly DS Future (p. 48), 1.2 Dutch Power Monthly DS Future (p. 51), 1.3 French Electricity Futures (p. 54), 1.4 French Power Monthly DS Future (p. 56), 1.5 German Electricity Base Year DS Future (p. 59), 1.6 German Electricity Base Year Future (p. 61), 1.7 German Electricity Base Quarter DS Future (p. 63), 1.8 German Electricity Base Quarter Future (p. 65), 1.9 German Electricity Base Month DS Future (p. 67), 1.10 German Electricity Base Month Future (p. 69), 1.11 German Electricity Base Average Rate Month future (p. 71), 1.12 German Electricity Base Week Future (p. 73), 1.13 German Electricity Base Day Future (p. 75), 1.14 German Electricity Peak Year DS Future (p. 77), 1.15 German Electricity Peak Year Future (p. 79), 1.16 German Electricity Peak Quarter DS Future (p. 81), 1.17 German Electricity Peak Quarter Future (p. 83), 1.18 German Electricity Peak Month DS Future (p. 85), 1.19 German Electricity Peak Month Future (p. 87), 1.20 German Electricity Peak Week Future (p. 89), 1.28 German EPAD Electricity Base Year Future (p. 107), 1.29 German EPAD Electricity Base Quarter Future (p. 110), 1.30 German EPAD Electricity Base Month Future (p. 113), 1.31 German Power Monthly DS Future (p. 115).
The definitions APX, BELPEX and EPEX are no longer referred to and therefore removed from the specific definitions under Part B section 1.2.1 (p. 15).
Expiry monthly market settlement
Under Part A, the general part of the Contract Specifications, sections 5.2 and 5.3 (p. 11) has been amended to better reflect that the expiry monthly market settlement of the Monthly DS Future contracts are calculated as the sum of the Expiry Market Settlement and Spot Reference Settlement.
This change is also reflected in the individual contract specifications under Part D sections 1.1 Belgian Power Monthly DS Future (p. 48), 1.2 Dutch Power Monthly DS Future (p. 51), 1.4 French Power Monthly DS Future (p. 56), 1.31 German Power Monthly DS Future (p. 115), 1.32 Italian Power Monthly DS Future (p. 118), 1.53 Spanish Power Monthly DS Future (p. 166), 1.58 UK Power Monthly DS Future (p. 176), 2.1 Belgian Zeebrugge Natural Gas Monthly DS Future (p. 180), 2.2 Dutch TTF Natural Gas Monthly DS Future (p. 182), 2.3 French PEG NORD Natural Gas Monthly DS Future (p. 185), 2.4 French TRS Natural Gas Monthly DS Future (p. 187), 2.5 German Gaspool Natural Gas Monthly DS Future (p. 189), 2.6 German NCG Natural Gas Monthly DS Future (p. 191), 2.7 UK NBP Natural Gas Monthly DS Future (p. 194).
Not reflecting material changes but to clarify the procedures for Expiry Market Settlement and Monthly Expiry Market Settlement, the margin calculation requirements have been amended under Part B special provisions relating to respectively electricity and gas contracts under 1 Electricity contracts section 1.5 (p.16) and Natural gas contracts section 2.3 (p. 17).
Electricity and Monthly DS Future 6 hour block contracts
To complement the existing offering, we are, in addition to the 4 hour blocks, listing 6 hour block series for the Electricity and Monthly DS Future contracts in the UK, German and French markets. The changes are reflected in the quotation list Past C sections 1.4 (p. 39) and 2.1 (p. 41) and the individual contract specifications of Part 4 under sections 1.4 (p. 56) for French, 1.31 (115) for German and 1.58 (p. 176) for UK Power Monthly DS Futures.
Renaming series designation of Electricity Monthly DS Future block contracts
To align with industry standard, the series designation of the German, French and UK Electricity and Gas Monthly DS Future block contracts has been changed. The changes are reflected in the quotation list sections 1.4 (p. 39) and 2.1 (p. 41) of Part 3 and the individual contract specifications of Part 4 under sections 1.4 (p. 56) for French, 1.31 (115) for German and 1.58 (p. 176) for UK Power Monthly DS Futures.
Renaming series designation of Natural Gas Monthly DS Future Balance of the Working Day Week and Balance of the Month contracts
To align with industry standard, the series designation of the Balance of the Working Day Week (BOW) and Balance of the Month (BOM) contracts for the following individual contract specifications under Part D: sections 2.2 Dutch TTF Natural Gas Monthly DS Future (p. 182), 2.6 German NCG Natural Gas Monthly DS Future (p. 191) and 2.7 UK NBP Natural Gas Monthly DS Future (p. 194).
Tick size - Natural Gas Monthly DS Future
Also, to further align with industry standard the tick size of the Natural Gas Monthly DS Futures will be changed from two (2) to four (4) decimals to EUR 0,0001. The changes are reflected in Part D, the individual contract specifications sections 2.1-2.7 (p. 179 ff).
Load - Natural Gas Monthly DS Future
It has been specified that the Bank holidays referred to under Load in the contract specifications for the Natural Gas Monthly DS Futures are UK Bank holidays. The changes are reflected in Part D, the individual contract specifications sections 2.1-2.7 (p. 179 ff).
Amendments to Joint Appendix 6 - Market Conduct Rules Transaction reporting
It is specified under Market Conduct Rules section 2.2 that reportable transactions shall be identified as market transactions within or outside the spread. This is not a new reporting requirement, but specifies the flags that are already included in the reporting system.
The procedures for registration of Block Trades has been added under section 2.5. This description is also included in the Block Trade Facility Procedure under Appendix 8, but has been added in the Market Conduct Rules as well for easy reference.
Inside Information
The specific requirement under Market Conduct Rules section 3.3 to cancel orders when holding inside information, has been deleted. The change is reflected in section 3.3.
Disclosure requirements
To reflect that the disclosure requirements are enforced by Nord Pool AS for the Norwegian Market and the national competent authorities under REMIT in the other European markets, the disclosure requirements are removed from the Market Conduct Rules. This change is reflected under section 4.
Amendments to Joint Appendix 7 – Fee List
There will be a change to the Safekeeping Fee under the Collateral Management Fee List. The change is reflected in Appendix 7 section 5.6. This change will take effect 1 December 2016.
Please note that minor and editorial changes may not be mentioned herein but can be found in the full text versions, which are provided on http://www.nasdaqomx.com/commodities/Marketac...lframework under UPCOMING CHANGES TO RULES (right column).
For further information, please contact Nasdaq Commodities:
Mette Steinsland, Legal Counsel Nasdaq Commodities, phone +47 67528071, mette.steinsland@nasdaq.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaq.com
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About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
Nasdaq Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with Nasdaq Oslo ASA are subject to clearing with Nasdaq Clearing.
About Nasdaq Clearing
Nasdaq Clearing is the trade name of Nasdaq Clearing AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
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