10.31.2022

Nasdaq Launches Custom Basket Calculation

10.31.2022
Nasdaq Launches Custom Basket Calculation

Nasdaq announced the launch of Nasdaq Custom Basket Calculation Service (CBCS). The introduction of CBCS to the market is driven by the increasing demand for a simpler and more efficient way of managing proprietary indexes, thematic baskets, and ESG investments.

CBCS allows clients to design and set up equity baskets with customized features such as currency, return type, composition, and weights from a pre-approved universe of stocks. The calculated basket level and reference data is validated and distributed along with daily basket weight reports.

The service is a result of a close collaboration between Nasdaq and S&P Global Market Intelligence, a provider of data and technology solutions to global markets.

“We are thrilled to see the launch of what is to be the first major product delivery in a wider collaboration between the two firms. Combining our service capabilities will offer enhanced administrative, calculation and distribution services, to provide a seamless, end- to- end workflow and address the demand for bespoke baskets,” said Christopher Hare, Executive Director at S&P Global Market Intelligence. “As we look forward to the next stage in the service, the ability to generate on-demand listed exposure for equity portfolios will introduce an exciting change in the trading vehicles available to consumers, and to the speed at which the customer demand can be satisfied.”

Through the new service, Nasdaq clients can now benefit from the calculation of the basket level for each basket, managed and verified corporate actions such as stock splits, dividends, mergers and acquisitions and the implementation of these changes into the defined baskets in a timely and accurate way.

“With CBCS, our clients get a fully managed solution for custom basket calculations, an outsourced calculation service to avoid conflict of interest by separating the calculation from the end-user’s own business, and a solution which is provided by Nasdaq’s licensed benchmark administrator and thereby ensures a high quality of data,” said James McKeone, VP Head of European Data at Nasdaq. “To build onto this momentum, we also aim to in the near future launch a solution enabling investors to create a forward contract on customized baskets as an alternative to OTC equity swaps.”

The service is available today to Nasdaq Stockholm AB or Nasdaq Clearing members. For more information, please visit.

Clients can access this service via their brokers and dealers that are members of Nasdaq Stockholm AB and/or Nasdaq Clearing AB.

Source: Nasdaq

Related articles

  1. Money Market Reform Switches to Europe

    MEMX reviewed recent S&P 500 stock splits to see the impact of changing round lots in high-priced stocks.

  2. SEC staff have been asked prepare new rule proposals for retail stock order handling and execution.

  3. AllianceBernstein will deconsolidate Bernstein Research from its financial statements after closing.

  4. CME, ICAP, Beast Apps Partner on Analytics

    The enhancements provide actionable insights within one click.

  5. Easy Money Tamps Down Volatility

    Increased volatility drives the buy side to take a closer look at how they are trading.