Nasdaq OMX Nordic Launches Cash Settled Single Stock Futures


NASDAQ OMX (NASDAQ: NDAQ) today announced the introduction of cash settled single stock futures on Norwegian, Danish and Swedish securities. The new instruments are similar to existing physically settled single stock futures, but settlement will instead be made in cash at expiration. The product will be offered on all underlying securities of Norwegian, Danish and Swedish single stock futures that are physically settled today.

The product accommodates increasing customer demand for cash settled products for trading in Nordics markets. Furthermore, the cash settled single stock future is expected to make trading in derivatives more accessible to investors. The advantages for investors of NASDAQ OMX Nordic in cash settled futures include central clearing of all derivatives, transparent product offering without hidden costs found in many retail products and simplicity as investors do not have to settle in a physical stock.

“In recent years we have seen increased international demand for trading in our Nordic markets. Since cash settlement is a standard offering in the European derivatives space we are making our European trading members feel even more at home with the array of products available to them in our Nordic markets. The launch is also relevant to our Nordic trading members as it makes derivatives trading even more accessible to investors by replacing expiration settlement in physical stock with expiration settlement in cash,” said Lauri Rosendahl, Head of Equities and Derivatives Markets at NASDAQ OMX Nordic.

The launch of single stock futures is an incremental step in a larger strategic move to prepare for coming EMIR regulation which will mandate all European OTC instruments be centrally cleared.

“NASDAQ OMX Nordic is moving towards becoming a major pan-European player across a variety of asset classes and this is an important step towards building a compelling offering in trading and clearing of derivatives in our Nordic markets,” said Lauri Rosendahl.

The trading on cash settled single stock futures will start on July 1, 2013.