Settlement & Delivery for Norwegian Products
Cash settlement
Cash settlement deriving from contract events in Norwegian derivatives is settled through NASDAQ OMX Derivatives Markets’ bank account in Norway. If you handle Norwegian options and forwards you must have a Norwegian bank account with a local bank in Norway.
All payments to NASDAQ OMX Derivatives Markets must be entered into the NASDAQ OMX Derivatives Markets account before the cut-off time for Norwegian payments at 12 noon CET on the settlement day.
Delivery
Deliveries of Norwegian underlying equities which result from the exercise of Norwegian stock options and Norwegian stock forwards are settled through the Norwegian CSD, VPS. If you trade in Norwegian equity options and forwards you must either be a direct clearing member in VPS or have a custody bank with clearing member status at VPS. Settlement of Norwegian underlying equities is executed in accordance with VPS rules: www.vps.no/pub/wps/portal
Settlement of Norwegian underlying equities takes place three days after exercise or assignment. To secure delivery in the underlying equity NASDAQ OMX Derivatives Markets holds margins during the delivery period.
Settlement schedule
Norwegian Products (NOK)
Products | Stock Options | Stock Futures | Stock Forwards | Index Options | Index Futures |
Premium | T+1 | | | T+1 | |
Trade Fee | T+1 | T+1 | E+3 | T+1 | T+1 |
Closing Fee | | | | E+1 | E+1 |
Excercise / Assignment Fee | E+3 | | | E+1 | |
Mark-to-Market | | Daily cash settlement | | | Daily cash settlement |
DVP / Expiration Settlement | DVP E+3 | DVP E+3 | DVP E+3 | Cash settled E+3 | Cash settled E+1 |
Abbreviations:
T = Trade date
E = Expiration date
DVP = Delivery versus Payment
