Custom Basket Forwards

Global Equity Exposure Made Simple

This Solution Helps

  • Asset Managers
  • Banks
  • Portfolio Managers
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Providing investors with tailored exposure to global equities – as well as security of multilateral trading and central clearing on Nasdaq Nordic.

A city with an overlay of an outline of a globe with blue rings circling around it.

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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Global
Equity
EXPOSURE MADE SIMPLE
Surveillance
Introduction of Custom Basket Forwards
Nasdaq Nordic is planning to introduce the new equity derivatives product Custom Basket Forwards (CBF), with production date depending on the regulatory approval.
View the IT-notice
Global
Equity
EXPOSURE MADE SIMPLE

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