Custom Basket Futures and Forwards allow investors to create a cash-settled futures or 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 Futures and 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 Futures and 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, Custom Basket Futures and Forwards 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, Custom Basket Futures and Forwards 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.