This is a joint notice regarding testing of T+2 standard settlement in cash equities, fixed income instruments and derivatives traded on NASDAQ OMX Nordic, NASDAQ OMX Baltic and NASDAQ OMX Derivatives Markets.
As of October 6, 2014, NASDAQ OMX Copenhagen, Helsinki, Stockholm, Iceland (pending results of the ongoing consultation), Tallinn, Riga and Vilnius exchanges and the existing First North markets will adopt T+2 standard settlement to securities admitted to trading on these venues.
In addition to securities, NASDAQ OMX Derivatives Markets will also adopt the T+2 settlement to physical deliveries resulting from expiries of derivatives with equities and the Danish fixed income as an underlying instrument. The Swedish fixed income derivatives remain in T+3 settlement on expiry. This is done in agreement with the participants of the NASDAQ OMX Derivatives Markets.
The implementation of T+2 standard settlement is a parameter change in existing functionality in INET Nordic and Genium INET systems. In order to facilitate members’ own system testing and verification, INET Nordic and Genium INET test systems are available for T+2 testing according to the information below. Testing is voluntary but recommended.
Testing time schedule
T+2 standard settlement on all the above instruments will be available for testing in two phases:
- Phase 1 for early testing: June 16 – June 27, 2014
- Phase 2 for testing: August 18 – October 3, 2014
During the period from June 30 to August 15, 2014, current T+3 standard settlement is rolled back to test systems.
Test systems available
- INET OTF
- Genium INET External Test 1 & External Test 3
- GCF3 and GCF4
Implementation details
- Genium Consolidated Feed TIP specifications: description for SettlementDate field in real-time Trade (TRd) message will be changed to “If the settlement date is not disseminated, the default date is two days from the trade date.”
- No other impact on any protocols used by the INET Nordic, Genium INET and the NASDAQ OMX surrounding systems.
Changes to reference data via Genium Consolidated Feed TIP
- Instruments traded in INET Nordic: not applicable (GCF TIP does not distribute the number of settlement days for these instruments).
- Fixed income instruments traded in Genium INET: Number of settlement days is disseminated in NoOfSettlementDays field in BasicDataTradable (BDt) message.
- Equity derivatives traded in Genium INET: not applicable (GCF TIP does not distribute the number of settlement days on expiration).
End-to-end testing
- For end-to-end testing including settlement, members are advised to make necessary arrangements themselves with the cash CCP (when applicable) and with relevant the CSD(s).
For more information, please visit NASDAQ OMX website for Q&A – Implementation of T+2. The purpose of the Q&A is to provide answers to the most common questions regarding the impact of the transition to T+2 standard settlement. The Q&A is a living document and will be updated when new information is available.
Support
If you have any questions regarding this Exchange Notice, please contact
- NASDAQ OMX Tech Support at: +46 8 405 6410, operator@nasdaqomx.com
- Clearing Operations at +46 8 405 6880, clearing@nasdaqomx.com
Best regards,
NASDAQ OMX Nordic, NASDAQ OMX Baltic and NASDAQ OMX Derivatives Markets
NASDAQ OMX Nordic is not a legal entity but describes the common offering from the NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm and Iceland.
NASDAQ OMX Baltic is not a legal entity but describes the common offering from the NASDAQ OMX exchanges in Tallinn, Riga and Vilnius.
NASDAQ OMX Derivatives Markets is a secondary name to NASDAQ OMX Stockholm, used for the derivatives trading and clearing operations.
