As previously communicated in the IT notice 55/17 , Nasdaq Nordic is planning to transfer the existing market segments for warrants and certificates on the Copenhagen, Helsinki and Stockholm regulated markets to respective First North Multilateral Trading Facilities (MTFs) operated by Nasdaq. The transfer is planned to be completed in a three step process where the new market segments under respective First North MTFs will be available in production on mid November 2017. A migration period for moving a limited set of existing instruments for verification will follow and as of December 1, 2017, trading will continue on the new market segments under First North in Copenhagen, Helsinki and Stockholm. This effectively means that the last day of trading in warrants and certificates on the existing market segments on the regulated market will be November 30, 2017. Please find the detailed time schedule further down in this notice. The transfer of these products to First North is pending regulatory approval.
Background
Regulation (EU) no. 600/2014 on Markets in Financial Instruments [MIFIR] has introduced, under Article 29, the clearing obligation for derivatives traded on the markets by requiring the regulated market operator to ensure that all derivative transactions concluded on the regulated market are centrally cleared by a Central Counterparty (CCP). MTFs do not fall within the scope of Article 29 and allow the current regulatory framework applicable to these financial instruments and their issuers to remain unchanged as well as the same operating characteristics in place today and similar protection for investors.
Due to the above reasons Nasdaq Nordic will close the regulated market for Securitized Derivatives (Warrants and Certificates) and at the same time launch a substitute market under the respective First North MTFs (First North Denmark, First North Finland, First North Sweden). The new market will have the same characteristics in terms of issuers’ obligations, in terms of rules for member participation and trading functionalities.
INET identifiers:
Current market segments will be permanently closed at the end of the trading day on November 30, 2017. The trading will continue on the new market segments on First North MTFs as of 1 th of December.
| Current Exchange/MIC | Current Market Segment name | New Exchange/MIC | New Segment Name | Segment Symbol | Seq. No |
| XCSE | OMX CPH Certificates (168) | FNDK | CPH Certificates | CPH CERT | 206 |
| XCSE | OMX CPH Warrants (167) | FNDK | CPH Warrants | CPH WAR | 207 |
| XHEL | OMX HEL Certificates (159) | FNFI | HEL Certificates | HEL CERT | 189 |
| XHEL | OMX HEL Covered Warrants (64) | FNFI | HEL Warrants | HEL WAR | 187 |
| XSTO | OMX STO Certificates (160) | FNSE | STO Certificates | STO CERT | 188 |
| XSTO | OMX STO Warrants (4) | FNSE | STO Warrants | STO WAR | 186 |
Opening Hours:
There will be no changes in the current opening hours.
Turnover Lists and List population ids:
There will be no changes in the current turnover lists and list population ids.
Market access:
Members trading in Securitized Derivatives today that do not have access to First North are required to be activated in order to trade the instruments in scope after the transfer to First North. For more information regarding the activation procedure, please contact Nasdaq Cash Equity Operations at operator@nasdaq.com .
Test system:
There will be test instruments configured on each new Market Segment as of October 9, 2017. Please find the attached excel sheet containing the identifiers of the instruments available for testing on the new Market Segments.
Time schedule:
- INET Test (NTF) and GCF TST4 – October 9, 2017
- INET Test (M2) and GCF TST3 – October 9, 2017
- Tentative dates for INET and GCF production launch:
1.New market segments available– November 15, 2017
2.New market segments available for test transfer of a limited set of existing instruments from the regulated market to new market segments under First North – November 15, 2017 until the end of the trading day on November 30, 2017
3. Closure of the market segments on the regulated market and transfer of the remaining instruments to the new market segments under First North:
a. Closure of the existing Market Segments on the regulated markets: End of trading day on November 30, 2017
b. All instruments traded on First North Sweden, First North Denmark, First North Finland: December 1, 2017
Market Model
The Nasdaq Nordic Market Model will be updated and will be effective as of November 15, 2017
Testing support
For technical questions relating to testing, please contact Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410 E-mail: operator@nasdaq.com
Best regards,
Nasdaq Nordic
Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn and Nasdaq Vilnius are respectively brand names for Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, Nasdaq Iceland hf., Nasdaq Riga AS, Nasdaq Stockholm AB, Nasdaq Tallinn AS and AB Nasdaq Vilnius. Nasdaq Nordic represents the common offering by Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland and Nasdaq Stockholm. Nasdaq Baltic represents the common offering by Nasdaq Tallinn, Nasdaq Riga and Nasdaq Vilnius.
