As previously communicated in IT Notice (28/15), Nasdaq Nordic is planning to introduce a “Soft Knock” Note Code for Warrants, Certificates and Exchange Traded Notes (ETN). The Note Code is planned to be available on Nasdaq Copenhagen, Helsinki and Stockholm. Soft Knock is planned for INET production from July 20, 2015 and has been available for testing in INET OTF and GCF4 as of June 8, 2015.
Soft Knock is an optional functionality for issuers of Warrants, Certificates and Exchange Traded Notes. Where a certain barrier level is reached, the issuer may request the instrument in question to be placed in Soft Knock by Nasdaq Nordic. The barrier level will be detailed in the final terms or other official documentation for the instrument. The request for Soft Knock will be evaluated by Nasdaq Nordic and where grounds exist for Soft Knock, it will commence by the instrument being placed in “Trading Halt- Knock Out” and by the dissemination of a Soft Knock note code. The order book will be flushed. Trading in the instrument will commence no earlier than the next trading day.
At the end of the Soft Knock period, the issuer will contact Nasdaq Nordic to request the termination of the Soft Knock for the instrument in question. The Soft Knock note code will be removed, leading to ITCH relaying an “Order Book Directory” message with an updated Note Code field for the Order Book. Market participants should refer to the issuer’s website for relevant updates in reference data related to the Soft Knock event.
The start of the Soft Knock is indicated by the dissemination of the note code for the impacted order book through the “Order Book Directory” message in ITCH.
The end of the Soft Knock and the removal of the Note Code lead to ITCH relaying an “Order Book Directory” message with an updated Note Code field for the order book.
INET identifiers:
Market segments impacted by the additional note code:
Exchange / MIC | Segment name | Segment symbol | Currency | Seq. no | GCF ID |
XSTO | OMX STO Warrants | SEEQ WAR | SEK | 4 | 21 |
XSTO | OMX STO Certificates | SEEQ CERT | SEK | 160 | 256 |
XSTO | OMX STO Exchange Traded Notes | SEEQ COM | SEK | 158 | 264 |
XHEL | OMX HEL Covered Warrants | FIEQ WAR | EUR | 64 | 93 |
XHEL | OMX HEL Certificates | FIEQ CERT | EUR | 159 | 258 |
XHEL | OMX HEL Exchange Traded Notes | FIEQ COM | EUR | 157 | 456 |
XCSE | OMX CPH Warrants | DKWA WAR | DKK | 167 | 308 |
XCSE | OMX CPH Certificates | DKWA CERT | DKK | 168 | 310 |
XCSE | OMX CPH Exchange Traded Notes | DKEQ COM | DKK | 357 | 458 |
TotalView-ITCH:
A new value is added to the Note Codes field of the Order Book Directory message (section 4.3.1):
- 4 194 304 = “SK” - Soft Knock
The new Note Code will be used to indicate that a symbol is subject to Soft Knock.
GCF TIP:
In TIP, the Note Code is relayed through the Basic Data Tradable message BDt or intraday in the real-time Notification message NOt.
Protocol specifications:
Next versions of INET protocol specifications are available at the Nasdaq Nordic Technical Information website, under INET Nordic Protocol Specifications.
Time schedule:
The Soft Knock Note Code is planned for launch:
- INET Test (OTF), GCF 4, GCF EXT2 – as of June 8, 2015.
- GCF Production – June 17, 2015
-
INET Production – July 20, 2015.
INET Nordic Market Model:
Changes will be reflected in the Market Model valid from July 20, 2015.
Questions and feedback:
If you have any questions regarding this Exchange Notice, please contact Nasdaq Tech Support at:
+46 8 4056410, operator@nasdaq.com.
Best regards,
Nasdaq Nordic
Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn and Nasdaq Vilnius are respectively brand names for NASDAQ OMX Copenhagen A/S, NASDAQ OMX Helsinki Ltd, NASDAQ OMX Iceland hf., NASDAQ OMX Riga AS, NASDAQ OMX Stockholm AB, NASDAQ OMX Tallinn AS and AB NASDAQ OMX Vilnius. Nasdaq Nordic represents the common offering by Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland and Nasdaq Stockholm.