Genium INET will be upgraded to version 4.0.0255 during the weekend 5-6 September.
As announced in Exchange Information 50/15, subject to testing and regulatory approval Nasdaq Commodities will launch new Nordic Electricity Futures and Option Contracts and extend the German Electricity Product Suite September 7. Further subject to testing and regulatory approval Nasdaq Commodities also introduces US Shredded Scrap Steel Futures and Iron Ore Futures and Options for trading and clearing September 7.
In addition there are minor amendments to the Trading and Clearing Rules for the CER option, the Contract Specification of the German Electricity Peak Year DS Future and to the procedure for Forced termination of options.
This is to inform you of upcoming amendments to the Trading and Clearing Rules of NASDAQ Commodities Markets that will come into effect on the 7 September.
The following documents are affected:
- Joint Trading and Clearing Appendix 1 – Definitions
- Joint Trading and Clearing Appendix 2 - Contract Specifications
- Joint Trading and Clearing Appendix 2A - Contract Specifications
- Joint Trading and Clearing Appendix 3 – Trading and Clearing Schedule
- Joint Trading and Clearing Appendix 7 – Fee List
For more information about the Nordic and German Futures and Option contracts kindly see https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=666133&messageId=829531.
For more information on the Genium INET upgrade 4.0.0255 kindly see:
Joint Trading and Clearing Appendix 1 – Definitions
The definition of the new Nordic and German Average Rate Future and Average Rate Options are added in the Definition list in Appendix 1 (p. 2). The Average Rate Future contracts can be traded in the delivery period, the so-called Spot Reference Period.
Joint Trading and Clearing Appendix 2 - Contract Specifications
Party A General Provisions
To integrate the Average Rate Futures Part A section 4.2.1 (p. 8) has been amended to reflect that Spot Reference Fix shall is being determined for all Products that are subject to both Spot Reference Settlement and Spot Reference Period.
To secure a correct daily Fix the Exchange may in its sole discretion, where it has duel listed Futures and DS Futures with the same reference, use either the Futures or the DS Futures Exchange Transactions and / or Orders to set a Daily Fix applicable to both the Futures and DS Futures. This is reflected in Part A new section 4.4.5 (p. 10).
Part B - Special Provisions Relating to Certain Product Types
Under Part B section 1.2 Spot Reference Period has been added to the definitions. Further sections 1.3 and 1.4 (p.15) respectively, reflect how the Expiration Day Fix and Option Fix are set.
Further under Part B, regarding the Freight contracts, there are amendments to the Procedure for Forced Termination of Option under section 5.7 (p. 30). The details of the calculation of Premium Settlement following Forced Termination is being removed from the Contract Specification and set out in Default Strategy Commodity Derivatives which is being published on the web.
For the launch of Ferrous products, the US Shredded Scrap Steel Futures and Iron Ore Futures and Option, Part B has been amended with a new chapter 7 Ferrous Contracts (p.33) setting out the definitions and special provisions relating to the US Shredded Scrap Steel and Iron Ore contracts. These special provisions follow the same pattern as the other special provisions and regulate the setting of Daily Fix, Expiration Day Fix, Option Fix, Option Exercise etc.
Part C – Quotation List
Part C lays out the listing cycles for all contracts.
The new Nordic and German Electricity Futures, Average Rate Futures and Option contracts are regulated under Part C sections 1.1, 1.2 and 1.5 (p. 36). The Nordic Futures will be listed 10 years on the curve as the existing DS Future Contracts. The Month Contracts however are listed 1 additional month compared to the DS Futures as there will always be one month in delivery.
There is a change for the Certified Emissions Reductions (CER) contract in Part C section 3.3 (p. 39) where the CER Option Contract will only be listed the first year and not the 2 front years as previously.
As communicated in Exchange and Clearing Message on the Exchange and Clearing Information 57/15 the individual Capesize C9 has been delisted. This is reflected in Part C section 5.1 (p. 40) and 5.1 (p. 222) and 5.10 (p. 242).
A quotation list for the Ferrous products, the US Shredded Scrap Steel Futures and Iron Ore Futures and Option has been added to Part C section 7 (p. 41).
Part D – Individual Contract Specifications
The following new contracts and individual contract specifications has been added:
Section 1.11 German Electricity Base Average Rate Month future (p. 65)
Section 1.27 German Electricity Base Average Future Month Option (p. 100)
Section 1.40 Nordic Electricity Base Year Future (p. 127)
Section 1.41 Nordic Electricity Base Quarter Future (p. 129)
Section 1.42 Nordic Electricity Base Average Rate Month Future (p. 131)
Section 1.48 Nordic Electricity Base Average Rate Month Future Option (p. 144)
Section 1.53 Nordic EPAD Electricity Base Year Future (p. 157)
Section 1.54 Nordic EPAD Electricity Base Quarter Future (p. 160)
Section 1.55 Nordic EPAD Electricity Base Average Rate Month Future (p. 163)
Section 7.1 US Shredded Scrap Steel Future – USSH (p. 265)
Section 7.2 Iron Ore Future (p. 266)
Section 7.3 Iron Ore Option (p. 268)
There has been made amendments to the individual contract specification of the Certified Emissions Reductions CER option contract CER in section 3.7 (p.209) to reflect that it will be listed only the first year and not the 2 front years.
By an inadvertency, the cascading has been defined equal under the German Electricity Peak Year DS Future and Future contracts. A correction has been made to the German Electricity Peak Year DS Future under section 1.14 (p. 72) so that this now reflects that price after cascading equals the contract price and not the Expiration Day Fix as for the Future contract.
Changes to the Joint Trading and Clearing Appendix 3 – Trading and Clearing Schedule
Under Trading and Clearing Appendix 3 – Trading and Clearing Schedule section 1.1 it has been added how the Expiration Day Fix and Option Fix is set for the new Average Rate Futures and Options on Expiration Day. The time is however the same as for all existing contracts.
The intraday schedule for the Ferrous contracts, the US Shredded Scrap Steel Futures and Iron Ore Futures and Option, are added to section 5 in Trading and Clearing Appendix 3 and replaces the schedule for Iron Ore which was previously listed only for clearing.
Changes to the Joint Trading and Clearing Appendix 7 – Fee List
Appendix 7, the Fee List, has been amended to reflect the new contracts being introduced for trading and clearing under section 3.1 and 3.2, ETS / MTS transactions and Block Trades and Exchange Future for Swap (EFS) / Exchange Future for Physical (EFP) respectively. Section 3.3 covering Iron Ore Futures and Options has been removed as a Non Exchange Transactions as it is now being listed for trading on the Exchange and is covered by sections 3.1 and 3.2.
Footnotes 9a and 9b have been amended and 9c and 9d have been added to clarify Clearing Portfolio Transfer fees.
For updated rulebooks and appendices please see:
http://www.nasdaqomx.com/commodities/Marketaccess/legalframework/upcoming-changes-to-rules
For further information, please contact Nasdaq Commodities:
Mette Steinsland, Senior Associate General Counsel, phone +47 6752 8071/+47 4003 5118, mette.steinsland@nasdaq.com
Anne-Marit Rudby, Product Director Commodities, phone +47 6752 8135, anne-marit.rudby@nasdaq.com
Hanne Johansson, Head of Commodity Sales - Global, phone +47 95 10 96 31, hanne.johansson@nasdaq.com
Jason Roland Hall, Product Manager Commodities, phone +4684057848, jason.hall@nasdaq.com
Media contact:
Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759, sara.aadnesen@nasdaq.com
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About Nasdaq Commodities
Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
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Nasdaq Clearing is the trade name of NASDAQ OMX Clearing AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomx.com/commodities
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