As previously communicated in IT notice 42/18 , Nasdaq Copenhagen will reclassify the Danish Investment Funds (UCITS Funds) traded on XCSE to follow the transparency rules set for Exchange Traded Funds (ETF). This change is regulatory driven as MiFID II regulation classifies Investment funds having a market maker as ETFs from the transparency perspective.
In order to comply with the new classification, the Investment Funds having a market maker falls under MiFIR identification “ETFS” instead of “OTHR”, which is applied currently for the affected instruments. Furthermore, part of the Alternative Investment Funds (AIF) will be classified as shares and hence falls under MiFIR identification “SHRS”. Investment Funds and AIFs which do not have a market maker will continue to have MiFIR identification “OTHR”. Investment Funds and AIFs with MiFIR ID “OTHR” are excluded from transparency regulatory reporting set by the MiFID II regulation. A list of Investment Funds with changed/unchanged MiFIR identification classification is in the attached spreadsheet.
In order to group the reclassified Investment Funds according to new classification, two new Market Segments with new respective turnover lists/list populations will be introduced. Additionally, new trading schedule and a new MiFID compliant tick size table will be introduced for the Investment Funds classified as ETFs. Please find the new identifiers with explanations below.
Identifiers:
Market Segments:
The Danish Investment Funds and Alternative Investment funds will be divided in to following market segments.
| Exchange / MIC | Current Market Segment Name | New Market Segment Name | Segment symbol | Seq. no | GCF Prod and GCF TST4 ID | Explanation |
| XCSE | OMX CPH Investment Funds | CPH Inv Funds UCITS ETF | DKEQ UTC | 16 | 850 | Rename the existing Market Segment according to the new ETF classification |
| XCSE | NEW | CPH Inv Funds UCITS non-MM | DKEQ UTC NMM | 219 | 858 | New Market Segment. Contains the Investment Funds without a market maker and hence not classified as ETFs |
| XCSE | OMX CPH Alternative Investment Funds | CPH AIF Companies and Funds | DKEQ OCIS | 104 | 854 | Rename the existing Market Segment. Contains the Alternative Investment Funds and Companies which do have a market maker and hence not classified as ETFs. |
| XCSE | NEW | CPH AIF Companies and Funds non-MM | DKEQ AIF NMM | 220 | 860 | New Market Segment. Contains the Alternative Investment Funds and companies without a market maker and hence not classified as ETFs |
Turnover lists and list population Ids:
Two additional turnover lists and list populations will be introduced for the Investment Funds and Alternative Investment Funds which does not have a market maker.
| Exchange | List Name | List Code | List ID | List GCF ID | List Population Name | ID | GCF ID | Explanation |
| XCSE | CPH Inv Funds UCITS non-MM | COCINMM | 124640 | 14602 | CPH Inv Funds UCITS non-MM | 123689 | 14606 | New list for Investment (UCITS) funds not having a market maker |
| XCSE | CPH AIF Companies and Funds non-MM | COAIFNMM | 124641 | 14604 | CPH AIF Companies and Funds non-MM | 123690 | 14608 | New list for AIF companies and funds not having a market maker |
Danish Investment funds and Alternative Investment Funds which are to be classified as ETFs will retain the current Turnover lists/List populations.
Trading schedule:
Following Trading Schedules will be applied for Instruments traded on the following Market Segments.
All times CET
| Explanation | Market Segment | Pre Open | Uncross | Continuous Trading | Post Trade | Closed |
| New Trading schedule with closing auction removed | CPH Inv Funds UCITS ETF CPH Inv Funds UCITS non-MM | 08:00 | 09:44:55 | 09:44:55-16:55 | 16:55 | 17:20:00-08:00 |
| Explanation | Market Segment | Pre Open | Uncross | Continuous trading | Pre close | Uncross | Post trade | Closed |
| Existing trading schedule | CPH AIF Funds and Companies CPH AIF Funds and Companies non-MM | 08:00 | 09:44:55 | 09:44:55-16:55 | 16:55 | 17:00 | 17:00 | 17:20-08:00 |
Tick Size Table (XCSE Inv Funds, AIF Id=237):
Investment Funds, which are reclassified as ETFs shall comply with the minimum tick size rules set in the regulatory technical standards on the tick size regime for shares, depositary receipts and exchange traded funds. Therefore, a new Tick Size table complying with the regulation will be introduced. Initially all Investment Funds and Alternative Investment Funds will use the same Tick Size table. In future, the tick size table for Alternative Investment funds falling under MiFIR identification “SHRS” needs to be reviewed. Please find the new tick size table below.
| Price | Tick Size |
| 0 - 49,99 | 0,01 |
| 50 - 99,98 | 0,02 |
| 100 - 199,95 | 0,05 |
| 200 - 999,90 | 0,10 |
| 1000 - 1999,80 | 0,2 |
| 2000 - 4999,50 | 0,5 |
| 5000 - 9999,00 | 1 |
| 10000 - 19998,00 | 2 |
| 20000 - 49995,00 | 5 |
| 50000 - | 10 |
Market Access
Members having trading access to the existing market segments on Nasdaq Copenhagen will also have trading access to the new segment.
The new segments CPH Inv Funds UCITS non-MM and CPH AIF Companies and Funds non-MM will be added to all FIX drops currently configured to listen to CPH Investment Funds and CPH Alternative Investment Funds data.
INET Nordic Production change procedure and consequences
The Investment Funds and Alternative Investment Funds which do not have a market maker will be moved into a new respective market segment.
As a consequence:
- The affected order books will be flushed during post trade on 24 August, 2018. Good-Till-Cancel (GTC) orders will be deleted, and participants will have to consider re-entering these orders on 27 August, 2018.
- Trades in these instruments where trade publication is deferred until end of trading day or later, will be published post trade on 24 August, 2018
Please find the attached excel spreadsheet containing information on instruments moving to the new market segments.
Time schedule:
INET Test (NTF) and GCF TST4 – in test
INET and GCF Production – August 27, 2018
INET Nordic Market Model
Market Model will be updated and will be effective as of August 27, 2018.
Support
For technical questions, please contact Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410 E-mail: operator@nasdaq.com
