Nasdaq NSDX, a new Market for Warrants and Certificates
Nasdaq Nordic has launched a new Nordic market for warrants and certificates. The previous market segments for Warrants and Certificates on the Copenhagen, Helsinki and Stockholm regulated markets have been transferred to the respective First North Multilateral Trading Facilities (MTFs).
In connection with the launch, the so-called Market Price Protection functionality (MPP) has been improved. In cases where a Market Maker is missing in the order book, MPP strengthens retail investor protection by countering individual trader’s trades between themselves at less favorable price levels.
“A Market Maker is crucial in order to maintain a functioning market for these types of securities. With the launch of Nasdaq NSDX, and the improvements in functionality that this new market brings, we are strengthening their ability to offer a liquid and safe market for both large and small investors who want to invest in warrants or certificates,” says Helena Wedin, European Head of Exchange Traded Products at Nasdaq.
The creation of Nasdaq NSDX is driven by the new MiFID II rules, coming into force on January 3, 2018, and entails new regulations for issuers and members. The aim is for the change to have a minimal effect on members and investors.
“With a world-leading technical platform and strong Nordic presence, Nasdaq has long been providing a leading market for warrants and certificates in the Nordic region. With Nasdaq NSDX, we want make sure we keep offering a liquid, transparent and regulated marketplace, while implementing a few improvements that benefit both issuers and investors on the way," says Helena Wedin.