#26-3 Listing of Derivatives at NGM

Nordic Growth Market (NGM) announced that various derivatives will be listed on its exchange, with detailed information provided in an attached file and enquiries directed to [e-mail]. NGM, an authorized Nordic exchange operating in Sweden, Norway, Denmark and Finland and a wholly-owned subsidiary of Boerse Stuttgart, offers a marketplace for exchange-traded products and company listings.

Analysis

Market structure: The NGM listing of new derivatives materially benefits NGM/Boerse Stuttgart (distribution +0.5–1.5% revenue uplift potential over 12–24 months) along with retail ETP issuers, specialist market‑makers and brokers that capture flow and fees. Incumbent Nordic venues (Nasdaq/NDAQ) and OTC liquidity providers face price pressure as listed standardized products compress bid/ask spreads by an estimated 5–20% in the first 3–6 months. Cross‑asset: improved on‑exchange options liquidity should lower local equity implied vols (Nordic single‑stock and index options) by ~5–15% and modestly reduce FX hedging costs for SEK pairs; sovereign bond impact is negligible unless volatility contagion occurs.

Key Decisions for Investors

• Establish a 1.5–2.5% long position in Deutsche Börse (DB1.DE) over 3–12 months to capture potential revenue lift from Boerse Stuttgart/NGM synergy; trim to 0.5% if ADV on new NGM derivatives remains <€10m after 90 days.
• Initiate a 0.75–1.5% long / 0.75–1.5% short pair: long DB1.DE, short Nasdaq (NDAQ) to express regional exchange share gains; close or invert after 6–12 months or if DB1.DE outperforms by >8% on relative basis.
• Buy 3‑month 25‑delta call/put straddles on EWD (iShares MSCI Sweden ETF) sized 0.5–1% notional to capture asymmetric retail‑driven volatility spikes around launch; sell into a >30% realized vol jump or after 90 days if IV compresses by >10 pts.
• Sell short‑dated (30–60 day) iron condors on liquid Nordic single‑stock or index options only after confirming two designated market‑makers provide continuous quotes for >90% of trading hours; limit max loss to 3x premium and stop out if width >2x historical average spread.
• Revisit positions at 30/60/90 days and exit or scale only if tradeable liquidity thresholds are met: ADV >€25m for product or quoted spread <150% of pre‑launch benchmark; otherwise reduce exposure by at least 50%.