NOIS - NASDAQ OMX Interest Rate Swap
 

NASDAQ OMX Stockholm provides central counterparty clearing services for Swedish and Norwegian fixed income products.

The market for interest rate swaps has developed during the last years. The total amount outstanding for interest rate swaps were in June 2008 over $350 trillion compared to $250 trillion in June 2006. The large volumes and the liquidity of the instruments has given the swapcurve the status as a benchmark curve for pricing and valuation of other instruments.

To support and expand the market for interest rate swap in Sweden NASDAQ OMX will launch a cash settled futures contract based on NASDAQ OMX SEK Swap Fixing. The contractbase is a fictive future starting interest rate swap with two, five or ten years to maturity. The contract is cash settled on the expiration day against the NASDAQ OMX SEK Swap Fixing for the relevant tenor. The contract will enable market participants to get exposure against the Swedish swap curve through an exchange cleared contract.
The NOIS contract suite constitutes a valuable tool in managing Swedish medium to long-term interest rate risk. The contract base is a forward starting synthetic Swedish Interest Rate Swap with two, five or ten years to maturity. The contract has standardized expiration days, i.e. IMM days. This means that liquidity is concentrated to a limited number of contracts, which benefits trading.

The contract is suitable both for directional trading as well as for spread trading, e.g. swap curve spreads like 2-year swap risk against 10-year swap risk or spreads against treasury and mortgage bond futures. The contract provides the investors an easy way to get exposure to the Swedish swapcurve.

Download product sheet: NASDAQ OMX SEK Interest Rate Swap Future Reference Guide 

Facts

All information provided on this page shall be deemed to be general information regarding the instruments that can be traded at the exchange. For current rules for trade with the instruments we refer to the rules and regulations. Information on this page shall under no circumstances constitute any recommendation regarding investment decisions. The visitor shall be personally liable for the risks associated with any investment decision based on information on this page. Notwithstanding that the accuracy of the information provided herein has been verified, NASDAQ OMX Stockholm assumes no liability with respect to the accuracy or use of such information.