As previously announced, NASDAQ OMX Commodities will change the naming conventions for certain instrument types.
Consistently, “Forward” will be replaced with “Deferred Settlement Future” or “DS Futures” and “CfD” (Contracts for Difference) will be replaced with the “Electricity Price Area Differential”. For practical reasons, the abbreviation “EPAD” will be used where CfD has been used previously.
As an example, the naming of the following contracts will change as follows:
•”German Electricity Base Forward” will change to “German Electricity Base Deferred Settlement Future”
•”Nordic CfD Electricity Base Forward” will change to “Nordic EPAD Base Deferred Settlement Future”
It is emphasized that there will be no changes to the behaviour of the contracts. E.g. settlement and margining methodologies are unchanged. The change is purely related to naming convention. The technical impact of these changes will be limited to contract descriptions, in particular, please note that there will be no impact on instrument ticker codes. The current “Forward Accrued Market Value” report will change name to “Contract Accrued Market Value, please see Clearing Information 72/13 for further details.
Further, some changes are done to improve the wording and clarifying some terms and procedures as well as implementing references to an approved settlement system according to the Settlement Finality Directive, the latter pending regulatory approval.
To reflect the changes described above, NASDAQ OMX Commodities Europe (the “Exchange”) and NASDAQ OMX Clearing (the “Clearinghouse”) have updated the Trading and Clearing Rules. The following documents are affected:
- Joint Trading and Clearing Appendix 1 Definitions
- Trading and Clearing Appendix 2 – Contract Specifications
- Joint Trading and Clearing Appendix 3 – Trading and Clearing Schedule Trading
- Trading Appendix 4 Trading Procedures
- Clearing Rules – General Terms
These amendments and additions will be implemented and come into effect on the 30 September.
CHANGES IN TRADING AND CLEARING APPENDIX 2 - CONTRACT SPECIFICATIONS AND TRADING AND CLEARING APPENDIX 1 - DEFINITIONS
The new naming conventions have now been generally incorporated throughout the Trading and Clearing Rules, especially in the Joint Trading and Clearing Appendix 1, Definitions and Trading and Clearing Appendix 2, Contract Specifications.
Furthermore, the contract specifications of two contracts have a slightly amended wording referring to cascading to Expiration Day Fix. The changes are incorporated in the Joint Trading and Clearing Appendix 2 – Contract Specifications Part D sections 1.6 and 1.7.
In some of the headings in the Contract Specifications, the word Base was left out. This has now been corrected and incorporated in Joint Trading and Clearing Appendix 2 – Contract Specifications Part D sections 1.20 – 1.25.
The wording of the expressions “Term” and “Listing of Series” in the contract specifications of the EUA and CER options has been improved. The changes are incorporated in the Joint Trading and Clearing Appendix 2 – Contract Specifications Part D sections 3.4 and 3.5.
CHANGES IN TRADING AND CLEARING APPENDIX 3 – TRADING AND CLEARING SCHEDULE and TRADING APPENDIX 4 – TRADING PROCEDURE
Trading Appendix 4 - Trading Procedures has in section 9.5 ETS Trading Errors referred to «Final Correction Time». This term has now been replaced with the Term «Error Correction Deadline» which is defined in the Joint Trading and Clearing Appendix 1, Definitions as “means the time specified in the Trading and Clearing Schedule, when corrections of Transaction errors at latest must be effected by the Exchange, upon which the registration of Transactions with the Clearinghouse becomes final.”
This is only change of terms, the definition is materially unchanged.
According to Joint Trading and Clearing Appendix 3, Trading and Clearing Schedule sections section 1.1 – 1.4 and 2 «Error Correction Deadline» is set to 18:00 CET.
CHANGES IN CLEARING RULES – GENERAL TERMS
The Clearinghouse is in a process of achieving the regulatory approval of the settlement system according to the Norwegian Payment Systems Act of 17 December 1999 no 95 (implementing EU Directive 98/26/EC on Settlement Finality in Payment and Securities Systems). Following this approval, we are implementing the following two sections in the Clearing Rules, General Terms sections 1.5 and 4.1.1:
1.5 “These Clearing Rules and all Clearing Transactions entered into pursuant to these Clearing Rules form part of a Security Settlement System under Norwegian Law pursuant to the Norwegian Payment Systems Act of 17 December 1999 no 95 (implementing EU Directive 98/26/EC on Settlement Finality in Payment and Securities Systems), as may be amended from time to time. A business day under the Security Settlement System is defined as 00:00 CET – 24:00 CET on a Bank Day.”
4.1.1 For the purposes of clause 1.5 above, a Clearing Transaction shall be deemed entered into the Security Settlement System when it has been created in accordance with section 4.1.2. Other than as set forth in these Clearing Rules section 4.7 below and in Clearing Appendix 4 OTC Clearing Procedures section 6, Clearing Transactions may not be revoked.
The wording of Clearing Rules, General Terms section 4.1.2 has been improved to make unambiguous that the cut of time for Clearing Transactions is decided by the Registration of the Exchange and Clearing Transactions respectively.
Furthermore, for the sake of clarity, the error complaint times for Exchange Transactions, that are currently only listed in the Trading Rules, have been implemented also in the Clearing Rules, General Terms section (new) 4.7.
For updated rulebooks and appendices please see: http://www.nasdaqomx.com/commodities/Marketac...estorules/
For further information, please contact NASDAQ OMX Commodities:
Trading desk, phone +47 6752 8037, desken@nasdaqomx.com
Mette Steinsland, Associate Legal Counsel, phone +47 6752 8071/+47 4003 5118, mette.steinsland@nasdaqomx.com
Media contact: Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaqomx.com
About NASDAQ OMX The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels economies and provides transformative technologies for the entire lifecycle of a trade - from risk management to trade to surveillance to clearing. In the U.S. and Europe, we own and operate 26 markets including 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed income, derivatives, commodities, futures and structured products. Able to process more than 1 million messages per second at sub-55 microsecond average speeds with 99.99% uptime, our technology drives more than 70 marketplaces in 50 developed and emerging countries into the future, powering 1 in 10 of the world’s securities transactions. Our award-winning data products and worldwide indexes are the benchmarks in the financial industry. Home to approximately 3,300 listed companies worth $6 trillion in market cap whose innovations shape our world, we give the ideas of tomorrow access to capital today. Welcome to where the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more, visit www.nasdaqomx.com. Follow us on Facebook (http://www.facebook.com/NASDAQ) and Twitter (http://www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)
About NASDAQ OMX Commodities NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NOS Clearing ASA is the leading clearing house for the freight market and a specialist clearing provider to the commodities markets. The company is wholly owned by the NASDAQ OMX Group Inc. The clearinghouse, which is situated in Oslo, has more than 300 members.
NASDAQ OMX Clearing AB 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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