Birds flying over water

    Custom Basket Forwards

    Global Equity Exposure Made Simple

    Providing investors with tailored exposure to global equities as well as security of multilateral trading and central counterparty clearing on Nasdaq Nordic.
     

    NEXT-GENERATION DERIVATIVES

    Combine customization with the benefits of CCP clearing and trading on a regulated market

     

    Nasdaq Custom Basket Forwards are an innovative derivative product addressing the rising demand for a simpler and more efficient way of handling tailored equity exposures.

    For firms struggling with the increasing challenges associated with OTC equity swaps, Nasdaq Custom Basket Forwards offer a cost-efficient alternative, combining bespoke elements with the benefits of central counterparty clearing and trading on a regulated market. 

    Download factsheet

     

    Technology
    Nasdaq Custom Basket Forwards

    A listed alternative to equity swaps

    Nasdaq Custom Basket Forwards enable investors to create a cash-settled forward contract on a customized equity basket selected from a broad stock universe.

    Access key resources:

    Custom Basket Forwards Factsheet -> Custom Basket Forwards Sales Presentation -> Custom Basket Forwards FAQs -> Custom Basket Forwards Service Description -> Custom Baskets Calculation Methodology -> Custom Basket Forwards Stock Universe ->

    Nasdaq Custom Basket Forwards enable investors to create a cash-settled forward contract on a customized equity basket selected from a broad stock universe.

    Access key resources:

    Custom Basket Forwards Factsheet -> Custom Basket Forwards Sales Presentation -> Custom Basket Forwards FAQs -> Custom Basket Forwards Service Description -> Custom Baskets Calculation Methodology -> Custom Basket Forwards Stock Universe ->

    Key Benefits

    Flexible, cost-efficient and secure

    Benefit from CCP clearing and trading on a regulated market. Combine the bespoke elements of uncleared derivatives with capital and cost efficiencies.

    A customized tool for ESG

    Create ESG and climate investment themes or track a benchmark and apply your own screening criteria.

    No need for ISDA agreement

    Reduce bilateral risk and dependency in liquidity provision without need of ISDA agreement.

    Global equity exposure made simple

    Gain access to tailored equity exposures globally with a standardized contract.

    Customized equity exposure in a single transaction

    Transact customized equity baskets with custom features such as currency, return type, composition and weights in a single contract.

    Instrument for custom basket users for short exposures

    Easily create long or short exposures by respectively buying or selling the forward contracts.

    A more simple and efficient way to handle global equity exposure

    One position. One contract. One transaction.

    How Nasdaq Custom Basket Forwards work


     

    Define your equity basket by currency and return type such as gross, net and price.

    Select your composition by defining the individual stocks and weights from a broad global stock universe.

    A cash-settled forward contract is issued in Nasdaq's trading and clearing systems.

    You're now able to transact the custom basket in a single instrument in one transaction.

    Features available to customize your equity basket

     

    ✓ Basket composition
    More than 1700 stocks available

    ✓ Basket base currency
    SEK / DKK / NOK / USD / EUR / GBP

    ✓ Return type
    Price / Gross / Net

    ✓ Public and private baskets

    ✓ Standard basket calculation methodology and Corporate Action treatment

    ✓ Exchange traded and CCP cleared contract

    ✓ Forward with a quarterly expiration and cash settlement

     

    ✓ Basket composition
    More than 1700 stocks available

    ✓ Basket base currency
    SEK / DKK / NOK / USD / EUR / GBP

    ✓ Return type
    Price / Gross / Net

    ✓ Public and private baskets

    ✓ Standard basket calculation methodology and Corporate Action treatment

    ✓ Exchange traded and CCP cleared contract

    ✓ Forward with a quarterly expiration and cash settlement

    How to get started

    Approach your equity derivatives broker to request a CBF basket or contact Nasdaq.

    Get in touch ->

    Frequently Asked Questions

    Custom Basket Forwards allow investors to create a cash-settled forward contract on a customized equity basket, combining tailored and bespoke elements with the benefits of CCP clearing and trading on a regulated market.

    Custom Basket Forwards are for investors seeking tailored and cost-efficient equity exposures without bilateral risk, dependency in liquidity provision and entering/maintaining ISDA agreements. Nasdaq has developed Custom Basket Forwards to address an increasing demand for a simpler and more efficient way to handle equity exposures with standardized contracts on a regulated market.

    For buy-side:

    For firms who are finding equity swaps increasingly difficult due to the pressure of regulations and changes in the industry, CBFs offer a simple and cost-effective alternative that gives them tailored equity exposure to a broad universe of stocks in a single contract with the benefit of CCP clearing and trading on a regulated market.

    For sell-side:

    For banks who are looking for new ways to reach buy-side clients locked in ISDA agreements with other banks, clients who don’t want to trade swaps/bilateral or clients who want more cost-efficient ways to create tailored equity exposure, CBFs offer a simpler and more efficient way to handle equity exposures with standardized contracts on a regulated market.        

    Exchange and Clearing members of Nasdaq Stockholm AB can submit basket requests following the signing of a license agreement and subject to the Exchange Rules and Clearing Rules of Nasdaq Derivatives Markets.

    The following elements can be customized:

    • Basket currency
    • Return type
    • Basket composition
    • Basket weights

    The referenced derivatives are traded and cleared in the same currency as the defined base currency of the basket.



    Download all FAQs


    Don't see your question here? Get in touch.

    What Market Participants Say


     

    #TradeTalks

    Transform the way you manage your equity investments

    Watch this short interview where Alessandro Romani, VP, Head of European Equity Derivatives at Nasdaq, talks about the benefits and use cases for Nasdaq Custom Basket Forwards.

    Download Report

    Solving the Investment Trilemma

    Explore the evolution of ESG and thematic investing in listed derivatives markets and the role that Custom Basket Forwards are playing in these developments. Download now ->

    CBF in the news

    Custom Basket Calculation Service

    The Nasdaq Custom Basket Calculation Service is a fully managed solution that empowers members of Nasdaq Stockholm AB and/or Nasdaq Clearing AB to design and set up equity baskets with customized features such as currency, return type, composition, and weights from a pre-approved universe of stocks.

    The calculation service responds to the increasing demand for a simpler and more efficient way of managing proprietary indexes, thematic baskets, and ESG investments.

    The result of close collaboration between Nasdaq and S&P Global Market Intelligence, Nasdaq Custom Basket Calculation Service provides investors with a scalable solution managing corporate actions over time.

    Nasdaq Custom Baskets are administered by Nasdaq Copenhagen A/S, a registered benchmark administrator under the Benchmarks Regulation.

    Learn More About Nasdaq Custom Basket Calculation Service

    View the announcement

    Download the factsheet

    Get in touch with our team

    Julian Butterworth, Head of European Sales: julian.butterworth@nasdaq.com

    Håkan Walden, Product Manager, Equity Derivatives: hakan.walden@nasdaq.com

    Exchange Brokers Desk: eb.mps@nasdaq.com

    Vibeke Bonde Nielsen, Nasdaq BMR Benchmark Administrator: vibeke.bonde.nielsen@nasdaq.com

    Let's get started

    Send your inquiries here

    Resource Center

    Related Solutions

    Stock Futures and Forwards

    Stock futures and forwards on Swedish, Danish, Norwegian and Finnish shares.

    Nordic Markets Stock Options

    Stock options are available for over 100 underlying shares on the Nordic markets.