IT – INET Nordic – REMINDER – Soft Knock Note Code for Warrants, Certificates and Exchange Traded Notes

Exchange Notice


As previously communicated in IT Notices (28/15 and 32/15), Nasdaq Nordic will introduce a “Soft Knock” Note Code for Warrants, Certificates and Exchange Traded Notes (ETN). The Note Code will be available on Nasdaq Copenhagen, Helsinki and Stockholm. Soft Knock will be available 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 are reflected in the Market Model valid from July 20, 2015.

Questions and feedback:
If you have any questions regarding this Exchange Notice, please contact Cash Equity Operations at:
+46 8 405 6410,
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.


Attachments

IT Notice - Reminder Soft Knock.pdf