Expiration Procedures for Derivatives Contracts
As a central counterparty, Nasdaq Clearing ensures physical settlement in accordance with the specific contracts cleared, the expiration procedures and the clearing rules of the relevant market.
Nasdaq Clearing clears multiple contract types over several different markets - spanning from equity and bonds to electricity certificates and emissions. The expiration and delivery process for equity derivatives, environmental products and repo contracts are outlined in the contract specifications for each product:
- Contract specifications for Nasdaq Derivatives Markets: Exchange Rules, Chapter 3 (i) and Chapter 3 (ii)
- Contract specifications for Nasdaq Commodities Markets: Trading Rules, Trading Appendices, Joint Appendix 2 - Contract Specifications
The expiration dates for products cleared with Nasdaq are viewable in the Nasdaq Trading Calendars for each product area. Refer to the Resource Center for more details.
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As a central counterparty, Nasdaq Clearing ensures physical settlement in accordance with the specific contracts cleared, the expiration procedures and the clearing rules of the relevant market.
Nasdaq Clearing clears multiple contract types over several different markets - spanning from equity and bonds to electricity certificates and emissions. The expiration and delivery process for equity derivatives, environmental products and repo contracts are outlined in the contract specifications for each product:
- Contract specifications for Nasdaq Derivatives Markets: Exchange Rules, Chapter 3 (i) and Chapter 3 (ii)
- Contract specifications for Nasdaq Commodities Markets: Trading Rules, Trading Appendices, Joint Appendix 2 - Contract Specifications
The expiration dates for products cleared with Nasdaq are viewable in the Nasdaq Trading Calendars for each product area. Refer to the Resource Center for more details.
Upon expiration day of any contract, Nasdaq Clearing will send out operational messages with information regarding final fixing, series that are in-the-money or other relevant information. To receive operational messages with expiration information from Nasdaq Derivatives Market and Nasdaq Commodities, sign up by following the links on the right-hand side of the web page.
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Upon expiration day of any contract, Nasdaq Clearing will send out operational messages with information regarding final fixing, series that are in-the-money or other relevant information. To receive operational messages with expiration information from Nasdaq Derivatives Market and Nasdaq Commodities, sign up by following the links on the right-hand side of the web page.
Delivery Process
As outlined in the contract specifications for each product, some of the equity and commodities contract exercises result in a delivery of the underlying physical asset. For example, stock options will settle through a delivery versus payment (DVP) instruction in a central security depository (CSD) in the relevant country and electricity certificate contracts are delivered through their relevant registry.
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As outlined in the contract specifications for each product, some of the equity and commodities contract exercises result in a delivery of the underlying physical asset. For example, stock options will settle through a delivery versus payment (DVP) instruction in a central security depository (CSD) in the relevant country and electricity certificate contracts are delivered through their relevant registry.
Clearing Members are obligated to communicate their Standing Settlement Instruction (SSI) details or any change of such details to Nasdaq Clearing at least two days prior to the effective date. Clearing Members can fill in the SSI delivery request through the Member Portal or send the Standard Settlement Instruction (SSI) for Securities form signed by an authorized signature to Nasdaq Clearing (clearing@nasdaq.com).
You can find the template of the SSI form and settlement parameters in the Resource Center below.
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Clearing Members are obligated to communicate their Standing Settlement Instruction (SSI) details or any change of such details to Nasdaq Clearing at least two days prior to the effective date. Clearing Members can fill in the SSI delivery request through the Member Portal or send the Standard Settlement Instruction (SSI) for Securities form signed by an authorized signature to Nasdaq Clearing (clearing@nasdaq.com).
You can find the template of the SSI form and settlement parameters in the Resource Center below.
Nasdaq Delivery SSIs for Securities Settlement
| Market | Place of Settlement | Proprietary Code | BIC | Account |
|---|---|---|---|---|
| Swedish Equities (AM) | Euroclear Sweden | N/A | OMECSESSNOC | 158645545 |
| Swedish Bonds (PM) | Euroclear Sweden | N/A | OMECSESSNOC | 143500635 |
| Swedish Bonds (PM) IMM trades | Euroclear Sweden | N/A | OMECSESSNOC | 46342559 |
| Danish Equities and Bonds | Euronext Securities Copenhagen | N/A | OMECSESSNOC | N/A |
| Finnish Equities | Euroclear Finland | N/A | OMECSESSNOC | APKE9000000000003210000000000083552 |
| Norwegian Equities | Euronext Securities Oslo | 45800 | OMECSESSNOC | 458004900007 |
| Electricity Certificates | CESAR | N/A | N/A | 643002406700077095 |
| Electricity Certificates | NECS | N/A | N/A | 707052300000015631 |
| European Union Allowances | Union Registry | N/A | N/A | EU-100-5016825-0-9 |
| Market | Place of Settlement | Proprietary Code | BIC |
|---|---|---|---|
| Swedish Equities (AM) | Euroclear Sweden | N/A | OMECSESSNOC |
| Swedish Bonds (PM) | Euroclear Sweden | N/A | OMECSESSNOC |
| Swedish Bonds (PM) IMM trades | Euroclear Sweden | N/A | OMECSESSNOC |
| Danish Equities and Bonds | Euronext Securities Copenhagen | N/A | OMECSESSNOC |
*For Euroclear Sweden PM submarket (institutional fixed income settlement), Nasdaq Clearing will manually create split settlement instructions when Nasdaq Clearing members/settlement agents have agreed with Nasdaq Clearing on a case by case basis to settle partially.
Physical Delivery of Swedish Bonds
Fixed income deliveries take place in the Swedish CSD, Euroclear Sweden AB, and pass through the Nasdaq Clearing account on the IMM-day (International Money Market day).
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On the expiration day for fixed income instruments, Nasdaq Clearing provides the Clearing Member information about the settlement that is to be delivered. When possible, the settlement of fixed income products is netted to blocks no larger than SEK 500 million in nominal value.
Please note that the delivery capacity for CCP Repos must be in place at the latest by 13:30 CET on the settlement day. At this point in time, a settlement instruction that leads to a short position will automatically be excluded by the Euroclear Sweden system. If such instruction that has been excluded at 13:30 CET should settle on that day, a new instruction must be created for settlement on that day.
Physical Delivery of Danish Bonds
The delivery of Danish bonds after expiration and exercise is carried out through the Danish CSD, Euronext Securities Copenhagen, where Nasdaq Clearing is a member.
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For Danish bonds, all deliveries are carried out via the Nasdaq Clearing's account with Euronext Securities Copenhagen. Clearing Members who have a delivery undertaking as a result of exercise must ensure that sufficient delivery capacity exists with respect to the relevant deliverable instrument.
Physical Delivery of Swedish/ Danish/Norwegian/Finnish Stocks
All deliveries are made on the second business day after expiration or exercise through the Nasdaq Clearing account at the local CSDs where Nasdaq Clearing is a member.
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- Swedish market: Euroclear Sweden
- Danish market: Euronext Securities Copenhagen
- Norwegian market: Euronext Securities Oslo
- Finnish market: Euroclear Finland
Clearing members who have a delivery undertaking as a result of exercise must ensure that sufficient delivery capacity exists with respect to the relevant deliverable instrument. Settlements occur based on each CSD's timeline, rules and regulations.
Physical Delivery of Electricity Certificates and EU Allowances
The net selling Clearing Member has an obligation to deliver their position to the Nasdaq Clearing account in CESAR or NECS for electricity certificates and Union Registry for European Union Allowances on the contract expiration day.
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One bank day after the expiration day, the settlement for net buyers is performed through the cash optimization process. Nasdaq Clearing performs deliveries to net buyers of electricity certificates and European Union Allowances deliveries three bank days after the expiration day.
In addition, three bank days after the expiration day, settlement for net sellers is also performed via the Cash Optimization process. Transfers to Nasdaq Clearing should be confirmed by completing the delivery forms that can be found in the Resource Center below.
