Derivatives: Introduction of Custom Basket Forwards on June 19 (163/23)
On June 14, 2023, Nasdaq Clearing AB received the necessary regulatory approvals for Custom Basket Forwards (CBF). Following the regulatory approval, the trading and clearing systems will be ready to support CBFs as of June 19, 2023.
Members wishing to gain access to CBF need to sign a Close Out Provider Agreement as well as a Service agreement and request access to the relevant market segment.
CBF is a new equity derivatives product that enables investors to create a cash settled forward contract on a customized equity basket selected from a broad stock universe.
Product information
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Underlying |
Bespoke stock basket |
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Basket creation |
Defined by basket requestor |
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Universe of stocks |
~1.700 European stocks (additional markets will be added) |
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Basket return type |
Price-, Gross- or Net return as defined by the requestor |
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Basket base currency |
EUR, USD, SEK, DKK, NOK or GBP |
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Basket composition |
Public or private |
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Basket ticker (public) |
“SB”+”G”/”N”/”P” (Gross/Net/Price) + ”XXX” (basket number or letter code) |
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Basket ticker (private) |
“OB”+”G”/”N”/”P” (Gross/Net/Price) + ”XXX” (basket number or letter code) |
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Basket RIC (Refinitiv) |
“.” followed by the Basket ticker, e.g. “.SBG001” for a public gross return basket |
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Corporate actions |
Standard treatment in accordance with the Custom Baskets Calculation Methodology |
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Benchmark Administrator |
Nasdaq Copenhagen A/S |
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Listing of contracts |
Upon Request |
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Contract type |
Forward contract with cash settlement at expiration |
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Contract currency |
Same as basket base currency |
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Expiration months |
Quarterly (Mar/ Jun/ Sep/ Dec) |
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Expiration day |
The first trading day following the third Friday of the expiration month |
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Final settlement price |
The basket closing level, rounded to four decimals, from the Friday prior to the expiration day |
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Trading mechanism |
Block trading (i.e. no electronic order book) |
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Trade price |
Price with up to four decimal places as agreed by the parties |
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Contract multiplier |
1 |
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Notional value per contract |
Contract multiplier x Trade price |
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Instrument name standard |
Basket ticker followed by expiration year identifier (one digit) and expiration month identifier (O=March, R=June, U=Sept, X=Dec) |
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CBF website |
www.nasdaq.com/solutions/custom-basket-forwards |
Technical product information
For further technical product information, please see reference to IT-notices below:
https://view.news.eu.nasdaq.com/view?id=b558f61582dc01e8389b5084e9b5bd80c&lang=en&src=notices
Member testing
CBFs are available for trading in EqD Test and are cleared in External test system 1 (EXT1).
For contact details please see attached file.
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