Settlement, expiration & delivery -

procedures for derivatives contracts

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Expiration procedures for derivatives contracts

As a result of counterparty obligations, Nasdaq Clearing carries out all cash settlements, expiration procedures and deliveries that arise from contractual responsibilities. As a central counterparty, Nasdaq Clearing guarantees settlement of all deliveries, independently of the counterparty’s delivery or payment ability.

Nasdaq Clearing clears a multitude of contract types over several different markets - spanning from equity and bonds to emissions - and the expiration and delivery process for specific contracts is outlined in the contract specifications for each product:

The expiration dates for products cleared with Nasdaq are viewable in the Nasdaq Trading Calendars for each product area.

Upon expiration day for any contract, Nasdaq Clearing will in most cases send out operational messages with information regarding final fixing, series that are in-the-money or other relevant information.

Market notices

Sign up to receive operational messages with expiration information from Nasdaq Derivatives Market and Nasdaq Commodities.

Delivery process

As specified in the contract descriptions 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 relevant country, and electricity certificate contracts are delivered through its registry.

Nasdaq Delivery SSIs for Physical Settlement

Market Place of Settlement BIC Account
Swedish Equities (AM) Euroclear Sweden OMECSESSNOC 41873408
Swedish Bonds (PM) Euroclear Sweden OMECSESSNOC 143500635
Swedish Bonds (PM) IMM trades Euroclear Sweden OMECSESSNOC 46342559
Danish Equities and Bonds VP Denmark OMECSESSNOC N/A
Finnish Equities Euroclear Finland OMECSESSNOC 323000182
Norwegian Equities VPS Norway OMECSESSNOC 201100000029
Electricity Certificates CESAR n/a 643002406700077095
EUA and CER Union Registry Norway n/a EU-100-5016825-0-9

Cash settlement process

Nasdaq Clearing provides members with a payment note for the payments to be made or received one business day prior to each settlement day. The cash settlement basis includes a calculation of all cash settlements as premiums, fees, mark-to-market and other cash settlements with the same settlement day, together to a net amount to be paid or received per clearing member and settlement bank.

All members must appoint an Approved Settlement Bank and sign a Power of Attorney in order to fulfil its obligations regarding payments (Direct Debit & Credit) which are not related to deliveries in accordance with the relevant contract specification.

  • The Clearing Member must no later than 09.00 a.m. CET on the Settlement Day ensure that it has the necessary balance on its account designated for Direct Debit.
  • If a Clearing Member is to receive cash settlement, Nasdaq Clearing sends payment instruction to the approved settlement bank at 12:30 p.m. CET (16:30 CET for USD) who performs the Credit.
  • Clearing Members who are also approved Settlement Banks, must no later than 10.00 a.m. CET on the Settlement Day ensure that it has the necessary balance on its account designated for Direct Debit.


Physical Settlement

Physical Delivery of Swedish Stocks

All deliveries are made through the Nasdaq Clearing account in the Swedish CSD, Euroclear Sweden AB, on the second business day after expiration or exercise.

Clearing members which 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 Bonds

Fixed income deliveries take place in the Swedish CSD, Euroclear Sweden B, and goes through the Nasdaq Clearing account on the IMM-day (International Money Market day).

On the expiration day for fixed income instruments, the clearing organization provides the clearing member with a settlement basis that is to be delivered in one or several instruments included in a contract base. When possible, the settlement of fixed income products is netted to blocks no larger than SEK 500 million in nominal value.

Settlement of most fixed income forwards takes place through cash settlement of the difference between the forward price and the fix value, respective to delivery of underlying securities to the fix value through Euroclear Sweden AB.  

Physical Delivery of Danish Stocks

The delivery of Danish stocks after expiration and exercise is carried out through the Danish CSD, VP, where Nasdaq is a member.

For Danish stocks, all deliveries are carried out via the clearing organization’s account with VP on the second business day after expiration or exercise. Clearing members which 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 Danish Bonds

The delivery of Danish bonds after expiration and exercise is carried out through the Danish CSD, VP, where Nasdaq Derivatives Markets is a member.

For Danish bonds all deliveries are carried out via the clearing organization’s account with VP on the second business day after expiration or exercise. Clearing members which 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 Norwegian Stocks

The delivery of Norwegian stocks after expiration and exercise are executed in the Norwegian CSD, VPS, where Nasdaq is a member.

For Norwegian stocks, all deliveries are carried out via the clearing organization’s account with VPS on the second business day after expiration or exercise. Clearing members which 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 Finnish Stocks

The delivery of Finnish stocks is carried out through Euroclear Finland Oy, the Finnish settlement system, HEX Clear.

All deliveries in HEX Clear are settled against Nasdaq Clearing and all stocks flow through the clearing organization’s book-entry account on the second business day after expiration or exercise. Clearing members which have a delivery undertaking as a result of exercise must ensure that sufficient delivery capacity exists with respect to the relevant deliverable instrument.

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