Nasdaq Nordic is planning an update to the current use of the Sold-Out Buy-Back (SO) functionality for Warrants, Certificates and Exchange Traded Notes (ETN). The functionality can currently be used in exceptional circumstances where the instrument has been sold out. Upon requests by issuers, Nasdaq Nordic will temporarily extend the use of the functionality to also cover situations where the issuer has issued replacement instruments for maturing ones and requests maturing instruments to be placed in buy-back. The technical implementation of the Sold-Out Buy-Back note code is unimpacted by this temporary market model change.
Nasdaq Nordic plans to introduce a specific Note Code for this type of buy-back phase during 2016. This addition will be separately communicated. Once the new Note Code is launched, the Sold-Out Buy-Back will return to its original scope of being applied only to situations where the product has been temporarily sold-out.
This extension of the use of Sold-Out Buy-Back functionality is planned for INET and GCF production as of February 22, 2016 and testing of the Note Code continues to be available in INET OTF and GCF- EXT4 upon request.
Details
Upon request by the issuer/market maker, maturing ETP instruments can be placed in Sold-Out Buy-Back where only selling back to the Market Maker is possible. The use of Sold-Out Buy-Back for this purpose is conditional on equivalent products being listed by the issuer and available for trading on the same market segment. Where Sold-Out Buy-Back is used for instruments about to mature, the Sold-Out Buy-Back phase can persist until the product expires.
INET identifiers:
Market segments impacted:
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 |
GCF/TIP and ITCH:
No changes.
Protocol specifications
No protocol changes.
Current versions of INET protocol specifications are available at the Nasdaq Nordic Technical Information website, under INET Nordic Protocol Specifications.
Implementation schedule
Time schedule
The extended use of the Sold-Out Buy-Back functionality:
- INET Test (OTF), GCF EXT4 – continues to be available for testing upon request
- GCF Production – February 22, 2016
- INET Production – February 22, 2016
Documentation
INET Nordic Market Model:
The Market Model effective as of February 22, 2016 will reflect this change. The current version of the Market Model can be viewed at www.nasdaqomx.com/nordicrules.
Support
For technical questions, please contact Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410,
E-mail: operator@nasdaq.com
A list of current test instruments can be obtained by contacting operator@nasdaq.com.
Best regards,
Nasdaq Nordic
“Nasdaq Nordic” is not a legal entity but represents the common offering by Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, Nasdaq Iceland hf. and Nasdaq Stockholm AB.