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.
On June 14, 2023, Nasdaq Clearing AB received the necessary regulatory approvals for Custom Basket Forwards (CBF). Following the regulatory approval, the trading and clearing systems is ready to support CBFs as of June 19, 2023.
CBF is a new equity derivatives product that enables investors to create a cash settled forward contract on a customized equity basket selected from a broad stock universe.
View Market Notice
Key Benefits
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.
A more simple and efficient way to handle global equity exposure
One position. One contract. One transaction.
How Nasdaq Custom Basket Forwards Work
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Define your equity basket by currency and return type such as gross, net and price.
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Select your composition by defining the individual stocks and weights from a broad global stock universe.
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A cash-settled forward contract is issued in Nasdaq's trading and clearing systems.
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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 +1.700 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
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✓ Basket composition +1.700 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
Frequently Asked Questions
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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.
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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.
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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.
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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.
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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.
What Market Participants Say
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
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
Let's get started
Resource Center
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- Custom Basket Forwards Factsheet
- Custom Basket Forwards FAQs
- Custom Basket Forwards Presentation
- Custom Basket Forwards Stock Universe (July 2023)
- Custom Basket Forwards Service Description
- Custom Baskets Calculation Methodology
- Equity - OMS II model
- Custom Basket Forwards IT Notice (23 February 2023)
- Custom Basket Forwards Exchange Notice (16 June 2023)
- Custom Basket Forwards Market Notice (6 July 2023)
