EEX / NFX Open Interest Migration
EEX Group has agreed to purchase from Nasdaq Futures Exchange (NFX) the core assets related to its futures and options exchange business in Dry Bulk Freight. In connection with this sale, the Dry Bulk Freight portfolio will be transferred to EEX and its clearing house ECC. This transaction gives NFX freight market participants the opportunity to migrate their open positions to EEX Group which offers identical contracts through its European and Asian trading venues.
What does the EEX / NFX OI Migration mean?
EEX and ECC in coordination with NFX and OCC will facilitate matching sessions where the open interest of each participant will be matched-up, and subsequent offsetting blocks will be entered into NFX to close-out the positions and new blocks will be entered at EEX to re-establish the positions. The transfer of these positions will be net at NFX’s closing price from the prior day.
What do I have to do?
Prior to participating in the sessions each participant must have a trading account with EEX, a clearing account with one of ECC’s GCMs, a positive trade risk limit, and an executed Migration Consent Letter.
When will it happen?
The first matching session is for Dry Bulk Freight and will take place on Thursday, 12th December, with additional sessions scheduled as needed. Participants will be required to migrate or close out all positions on NFX prior to February 1, 2020. Once all positions have been fully migrated the contracts will be de-listed on NFX and all trading will continue only on EEX and EEX Asia which are both cleared by ECC.
Will it cost me anything?
EEX and NFX aim to offer the full transfer free of charge and are working with all parties on special fee waivers.