Monday October 23 2017
News Source: Global Exchanges
Focus: Other
Type: General
Country: Denmark
Link: http://business.nasdaq.com/list/Rules-and-Regulations/European-rules/nasdaq-copenhagen/index.html
On the 19th October 2017, Nasdaq Copenhagen updated Chapter 3(ii) of the Exchange Rules and Clearing Rules of Nasdaq Derivatives Markets covering contract specifications for repo contracts (3.37, 3.38 and 3.41) to include a risk disclosure statement.
The rules state identifies risk that occur when securities are sold under a report contract. One risk identified by Nasdaq is when securities are sold without a Clearing House receiving the securities in adequate time, thus delaying the transfer of securities between the Clearing House and the Seller.
If this occurs the Seller may be unable to fulfil its settlement obligations under a hedging or other transaction that the Seller has entered into in relation to those securities and the Seller may be unable to exercise rights or take other action in relation to those securities.
For additional information please click the link above.