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Expiration and Delivery

Procedures for derivatives contracts
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Overview

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 and repo contracts are 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. 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, 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 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.
 

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.

Settlement Documentation

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

Buy-In Process

If a counterparty fails to timely perform delivery of the deliverable instrument in the denominated currency to the Clearing House, the counterparty is subject to the Buy-in escalation procedure defined in section 2.11.6 Chapter 2 under Clearing Rules of Nasdaq Derivatives Market.

Settlement of obligations with respect to Instruments cleared by the Clearing House takes place in the manner stated in section 2.11 Chapter 2 under Clearing Rules of Nasdaq Derivatives Market and in accordance with the respective contract specification. Information about administration fees can be found under Appendix 3 to the Clearing Rules of Nasdaq Derivatives Market – Fee List (joint Exchange and Clearing Rules).
 

Mandatory Partial Settlement

Nasdaq Clearing mandates partial settlement to settle a fraction of the original quantity when full settlement is not possible. Partial settlement can resolve delivery problems in the settlement process, resulting in a reduced number and value of failed settlement instructions, improving the settlement ratio and settlement efficiency. The table below lists CSDs for which Nasdaq Clearing mandates partial settlement.

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).

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.

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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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.
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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.
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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.
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Resource Center
Settlement Documentation
Standing Settlement Instruction (SSI) - Delivery Download Settlement Parameters Download
CSDR Settlement Discipline Penalties
CSDR Settlement Discipline Penalties Download
Calendars
Trading hours and calendars for Equity and Fixed Income Derivatives Explore More Holiday Calendar Download

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