Friday, July 6, 2018
Futures Trader Alert #2018 - 14
NFX Dry Freight Migration
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Markets Impacted:Contact Information:
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The Nasdaq Freight Migration will be moved back slightly to allow for two additional days of customer onboarding and clearinghouse testing. On July 12, 2018 Nasdaq Futures, Inc. (“NFX” or the “Exchange”) will migrate existing Freight Financial Futures contracts and associated Options on Financial Futures contracts (“Freight contracts”) currently listed on Nasdaq Commodities Europe to NFX. This process will be facilitated through the submission of block trades by NFX. The migration process will be completed within one Open Session. The NFX trading system will not accept orders for the Freight contracts on July 12th. Accordingly, all trade volume occurring on July 12th will reflect the submission of block trades by NFX and will not reflect that traditional volume which occurs when market participants execute transactions in the open market. The contract specifications for the Freight contracts allow for a block trade threshold limit of one contract so that NFX may facilitate the migration. Upon completion of the migration the contract specifications for the Freight contracts will be amended to remove the one contract threshold. Freight Migration Schedule Wednesday, July 11
Thursday, July 12
Friday, July 13
Risk Limit Adjustments for Migration To ensure that all the opening NFX transactions flow smoothly, NFX will be adjusting customer and house risk limits on Wednesday, July 11 to a high threshold that will prevent any migration trades from being rejected due to risk limit breaches. Following the input of all the opening NFX migration transactions on July 12, NFX will return all risk limits to levels that were previously established by each FCM. Prevention of Non-Migration Trades at NFX NFX will prevent non-migration freight transactions from occurring though the end of the July 12 migration session. After the risk limits have been re-established, NFX will enable voice brokers to enter new freight transactions for the July 13 session. How will contracts be migrated onto NFX? Positions on Nasdaq Commodities Europe will be closed out on the morning of July 12th based on the July 11th settlement prices. That same Open Session (July 12th), NFX will establish identical positions for each market participant on NFX using the identical, July 11th settlement prices. All trades will be entered as block trades. Starting with the July 13th session, brokers will be able to commence standard trading through the NFX order book or through Off-Exchange transactions in accordance with our rules. For additional information, please contact NFX Market Operations or call 215.496.5409. |
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