Custom Basket Forwards
Global Equity Exposure Made Simple
This Solution Helps
- Asset Managers
- Banks
- Portfolio Managers
Providing investors with tailored exposure to global equities – as well as security of multilateral trading and central clearing on Nasdaq Nordic.
Custom Basket Forwards – CBFs – will enable investors to create a forward contract on a customized basket of different global stocks. Nasdaq has developed Custom Basket Forwards to address the increasing demand for a more simple and efficient way to handle a global equity exposure. Changes in the regulatory landscape put more pressure on bilateral over-the-counter (OTC) agreements in terms of capital and margin requirements. Other hurdles for trading OTC derivatives include bilateral risk and dependency in liquidity provision, decreased price efficiency and costs to enter and maintain ISDA agreements.
Key benefits with Custom Basket Forwards
- Flexible, cost efficient and secure
- Global and single transactions in selected currencies and universe of countries
- Global equity exposure made simple
- Instrument for custom basket users for short exposures
- A customized tool for ESG investments
- ETD status – reduce complexity, risks and costs of ISDA based structures
For more information about the following topics, please contact our team.
- Basket expiration price and methodology
- Service description
- Basket request procedure
- Margining
- Eligible collateral and position limits
- Transaction fees and access to market segment
- Collateral management fees
Interesting read
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Custom Basket Forwards Factsheet Download Custom Basket Forwards Factsheet
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Equity - OMS II model Download Equity - OMS II model
