CFTC Approves Danish Blue Chip Index Future
Nasdaq Nordic today announced that the U.S. Commodity Futures Trading Commission (CFTC) has granted the Nasdaq Nordic OMXC25 Index Futures contract a certification, which allows for the offering and selling of the index future within the United States of America.
Effective August 13, market participants and investors domiciled in the U.S. may be offered OMXC25 Index Futures contracts. The OMXC25 index future contract is the leading Danish blue chip index future over the 25 largest and most liquid Danish equities listed on the Nasdaq Copenhagen exchange.
Danish equities increasingly traded by non-Nordic investors
During the past six years trading volume in Danish equities has increased from an average daily turnover of DKK 2.4 billion ($372m) in 2012 to an average daily turnover of DKK 6 billion in 2018. Today, seven out of 10 Nasdaq Nordic broker members are based outside the Nordics.
”The CFTC certification now provides for the largest futures brokers and commodity funds in North America to invest in Danish index futures. This is a significant milestone to further open our equity and derivatives markets to U.S. market participants.,” said Nikolaj Kosakewitsch, President of Nasdaq Copenhagen and VP European Equities and Derivatives.
In 1996, the CFTC certification was granted to the OMXS30 Index Future and it is today one of the most traded index futures in Europe.
”We estimate that 25 pct of the flow in the OMXS30 Index Future comes from U.S. based investors, a contributing factor in making it one of the most attractive index futures in Europe. This is a success we hope to replicate with the OMXC25 Index Future,” said Nikolaj Kosakewitsch.
Source: Nasdaq Nordic
CEDX opened on 6 September, offering contracts on Cboe Europe single country and pan-European indices.
The MOU covers certain security-based swap dealers and participants.
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The analysis is based on transactions publicly reported by 30 European APAs and venues.
A similar service is available on the BIDS platform in the US equity market.