IT - INET Nordic - NASDAQ OMX Nordic introduces segments for Exchange Traded Notes as of May 23, 2011 - REMINDER (85/11)

NASDAQ OMX exchanges in Stockholm, Helsinki and Copenhagen will introduce new segments for Exchange Traded Notes (ETNs) to enhance NASDAQ OMX Nordic structured product offering.

Background

The current market segments for structured products are "Fund units", "Warrants" and "Certificates". Part of the instruments on the current Certificates segments are today perceived as Exchange Traded Notes. Therefore, new Exchange Traded Notes segments will be created and those instruments classified as ETNs will be transferred to the new segments. Certificates segments with certificate instruments remain in INET system.

ETN definition

An ETN is a debt obligation, note, issued by a bank. The ETN is similar to ETFs in their construction however the ETN are more flexible in how the assets are allocated, compared to a fund. An ETN mirrors the return of assets such as stocks, bonds, futures, commodities, currencies or similar products, or combinations thereof, and which may or may not try to replicate an index. They have long maturities or are open-ended and with a symmetric return. They are cash settled at expiration.

INET identifiers

Instrument Type and Instrument Subtype

ETNs use Instrument Type Warrants and subtype Certificates in INET Nordic system.

For Stockholm and Helsinki Exchange Traded Notes segments, existing segment numbers 158 and 157 will be used and renamed. For Copenhagen, a new segment will be created.

Market segments

Turnover lists and List Populations

Order books to be transferred from current Certificates segments to new ETN segments are presented in the excel sheet attachment (updated 2011-05-17). Order book id’s will be retained.

Possible new ETN-listings might occur on these last few days before launch. If so, they are not included in attached excel sheet but of course added to the ETN-segment in the system.

Market access

All exchange members who currently are connected to Certificates segments on respective exchanges will automatically have trading access to the Exchange Traded Notes segments as of May 23, 2011.

Retrieval of member private trade info

Members whose INET Drop filters currently include market segments where ETNs are traded will have their drop ports automatically updated by NASDAQ OMX to cover also the corresponding new segment(s).

Market model

ETN segments market model follows the market model of Certificates segments in respective exchanges. Next version of the INET Nordic Market Model has been updated to reflect the new setup.

Clearing

Executed trades will be bilaterally cleared in local CSDs.

Time schedule

2011-04-27:   Setup is available in external test system INET OTF/GCF4.

2011-05-23:  Launch date in INET Nordic production system.

INET Nordic Production change procedure and consequences

• Good-Till-Cancel (GTC) orders will be deleted after closing on Friday May 20. You have to consider reentering these orders again on Monday May 23.
• Trade Reporting Deferred Publication: Not allowed to submit such trades on Friday May 20 to be published on Monday May 23. If such TRDP trades are found they will be deleted on Friday May 20, after closing.
• As-Of Reporting: Not allowed to submit such trades on May 23 with a trade date prior to May 23.

Questions and feed-back

For further information and feedback concerning this information, please contact

Marja Hyttinen (marja.hyttinen@nasdaqomx.com) phone +358 9 6166 7272 or
your Key Account Manager.

Best regards,

NASDAQ OMX Nordic

[1] This segment has currently no active orderbooks.

[2] This segment is currently not active.