Nasdaq launches custom service to design and set up equity baskets

Rick Steves

“To build onto this momentum, we also aim to in the near future launch a solution enabling investors to create a forward contract on customized baskets as an alternative to OTC equity swaps.”

Nasdaq growth record

Nasdaq has launched Nasdaq Custom Basket Calculation Service (CBCS), which allows clients to design and set up equity baskets with customized features such as currency, return type, composition, and weights from a pre-approved universe of stocks.

The calculated basket level and reference data is validated and distributed along with daily basket weight reports.

Nasdaq launched CBCS to address increasing demand for an efficient way of managing proprietary indexes, thematic baskets, and ESG investments. The service stems from a collaboration between Nasdaq and S&P Global Market Intelligence.

Outsourced calculation service to avoid conflict of interest

Available to Nasdaq Stockholm AB or Nasdaq Clearing members, the CBCS service allows clients to benefit from the calculation of the basket level for each basket, managed and verified corporate actions such as stock splits, dividends, mergers and acquisitions and the implementation of these changes into the defined baskets in a timely and accurate way.

Christopher Hare, Executive Director at S&P Global Market Intelligence, said: “We are thrilled to see the launch of what is to be the first major product delivery in a wider collaboration between the two firms. Combining our service capabilities will offer enhanced administrative, calculation and distribution services, to provide a seamless, end- to- end workflow and address the demand for bespoke baskets. As we look forward to the next stage in the service, the ability to generate on-demand listed exposure for equity portfolios will introduce an exciting change in the trading vehicles available to consumers, and to the speed at which the customer demand can be satisfied.”

James McKeone, VP Head of European Data at Nasdaq, commented: “With CBCS, our clients get a fully managed solution for custom basket calculations, an outsourced calculation service to avoid conflict of interest by separating the calculation from the end-user’s own business, and a solution which is provided by Nasdaq’s licensed benchmark administrator and thereby ensures a high quality of data. To build onto this momentum, we also aim to in the near future launch a solution enabling investors to create a forward contract on customized baskets as an alternative to OTC equity swaps.”

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