The Nasdaq Swedish krona FRA forward contract has been traded and cleared by the market for over 30 years - the contract has been the backbone of short-end derivatives trading. As times are changing, the need to complement the market with a standardized and recognizable contract has increased.
In order to comply with market needs after consultation, Nasdaq has reached the decision to launch a new FRA contract “Nasdaq Stibor™ 3 Month Contract” which is a revamp of the current Generic Stibor-FRA (tailor-made FRA / series name SEK_FRA_3M).
Key changes compared to the existing Generic Stibor-FRA is that the contract will be available not only for members and clients approved for Generic Rates Instruments. The SEK_FRA_3M series name will remain.
The contract will have standardized start dates which always occur on IMM days. This means that trading is concentrated to a limited number of interest periods, which benefits liquidity and gives this OTC instrument the advantages of a listed contract.
The contract will be introduced during the first six months of 2019, in close collaboration with current Market Makers.
As a preparation for this change, the current Generic Stibor-FRA contract will only allow IMM dates from 14th of January 2019. The current FRA Forward monthly settled contract (series name FRA**) will continue during an undefined future to allow all market participants to prepare for a smooth transition into the Nasdaq Stibor™ 3 Month Contract.
Nasdaq will delist the existing FRA Future (Stibor Future / series name 3STIBFRA*) by end of November 2018 as there is no open interest in this series.
Product specification for the Nasdaq Stibor™ 3 Month Contract is attached.
For further information concerning this exchange notice please contact: fixedincomesweden@nasdaq.com
Malin Bonsted, +46 8 405 60 00
Ulrica Ahlstedt, +46 8 405 60 00
Best Regards
Nasdaq Nordic Fixed Income, Nasdaq Stockholm
