How to trade stocks from the Swedish OMX market?

Swedish Stock

When you have given a thought to start trading with your money or you can say putting your money to work, you find that there are so many stocks and shares to invest upon. Each has its own benefit and portrays own returns. One of the most popular and much into limelight is the Swedish stock and market. The Stockholm Stock Exchange operating under the brand name Nasdaq Stockholm is a stock exchange located in Frihamnen, Stockholm, Sweden. Founded in 1863, it has become the primary securities exchange of the Nordic countries. More than 300 companies have been listed for trading.

Brief about the merger with NASDAQ OMX Group

The Stockholm Stock Exchange was acquired by futures exchange OM in 1998. After OM merged with the Helsinki Stock Exchange to form what is now OMX in 2003, the Stockholm and Helsinki exchanges’ operations were merged. Since 2008, the Stockholm Exchange has been part of the NASDAQ OMX Group. The exchange operates under the legal name Nasdaq OMX Stockholm AB. Prior to the introduction of electronic trading on 1 June 1990, all trading was conducted on the floor of the Stockholm Stock Exchange Building.

OMX AB (Aktiebolaget Optionsmäklarna/Helsinki Stock Exchange) is a Swedo-Finnish financial services company, formed in 2003 through a merger between OM AB and HEX plc and is a part of the NASDAQ OMX Group since February 2008.

OMX Exchanges and OMX Technologies

OMX AB Group has two divisions, OMX Exchanges, which operates eight stock exchanges mainly in the Nordic and Baltic countries, and OMX Technology, which develops and markets systems for financial transactions used by OMX Exchanges, as well as by other stock exchanges. The company is a world leader in financial instruments trading systems.

In North America OMX supports its most high profile customers such as the Financial Industry Regulatory Authority (FINRA), ICAP, ISE, and IDCG which are powered by OMX trading systems such as X-stream, CLICK, CONDICO and SAXESS.

OMX is the world’s leading provider of central securities depository (CSD) technology. Its Equator CSD product is used by clients in Europe, the Middle East, Africa and the Caribbean.

Central Counterparty Clearing (CCC) technology is a significant potential growth area for OMX. OMX’s SECUR clearing and Genium trading platform facilitate trade novation, derivatives clearing, risk management and improved liquidity. SECUR clearing and Genium trading technology are in production around the world.

About NASDAQ

Nasdaq, Inc. is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,500 listed companies. Nasdaq Nordic describes the common offering from Nasdaq exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Riga, Tallinn and Vilnius.

National Association of Securities Dealers Automated Quotation system (NASDAQ) was originally founded in 1971 to trade securities for companies that were not offered on a formal exchange. At its inception, these stocks were mainly technology companies.

NASDAQ does not have a trading floor like the New York Stock Exchange (NYSE).  Rather, all buying and selling takes place electronically in the NASDAQ system. A purchaser electronically sends his order to market makers, who post the bid and ask prices for securities.  Once the price is accepted, the trade is made electronically.

NASDAQ merged with Swedish electronic trading company OMX ABO.  The combination (called NASDAQ OMX) now lists over 4,000 companies and trades can be made for commodities, debt, derivatives, ETFs and structured products via the NASDAQ OMX systems. The group also provides services that help companies with their ongoing capital raising needs.

A few of the companies listed on NASDAQ are Apple, Bed Bath & Beyond, eBay, Google, Intuit, Inc. Microsoft, Netflix, Tesla Motors, Viacom and Yahoo.   When stock ticker symbols are used to identify a company, NASDAQ stock ticker symbols are usually up to four letters.  In contrast, the NYSE has up to three.

Trading on Swedish Stock Options

If you’re trading on index binary options or stocks, you’ll understand the importance of understanding the economic outlook of major markets. When you look into the number of Swedish stock options to its online trading platform and before  you are planning to trade you’ll need to take a look at how the Swedish economy has been performing and think about where it’s heading in the future. Sweden’s economy is heavily influenced by general economic indicators such as growth in its exports, consumer confidence as well as manufacturing confidence.

Trading through NASDAQ platform

Swedish trading platforms are core of their identity and support global equities, options, futures, fixed income, fx, commodities, derivatives and structured products. They offer trading around the globe across multiple asset classes to provide fair
and efficient access to liquidity.

You can trade on

  1. Equities- They own and operate 10 equities markets around the world, including the largest single liquidity pool for U.S. equities offering several different market models in the U.S. and efficient cross-border trading, settlement and membership through one integrated European platform
  2. Fixed income- Wide range of product offerings from U.S. Treasury Securities to European equities, clearing and derivatives.
  3. Commodities- Power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore and electricity certificates.
  4. Options and Futures- Dividend futures, tailor-made combinations, algos and routing strategies
  5. Funds- ETF, mutual fund products.
  6. Private Shares-Private companies

Features of NASDAQ Stock Market Trading

  • The Nasdaq Stock Market (Nasdaq) trades more U.S. equities than any other U.S. exchange.
  • Nasdaq increases your speed of execution, ensuring your quote updates and orders are processed nearly instantaneously.
  • Nasdaq is renowned for its high performance INET technology and has proven reliability with 99.99 % uptime.
  • Firms count on Nasdaq for unsurpassed speed and tested capacity to execute trades quickly and efficiently.
  • Nasdaq’s value-added products and services provide the complete package for your U.S. equity trading.
  • Nasdaq Nordic trades all Nordic equities on a single platform, serving as a central gateway to the Nordic financial market, offering listing and trading services for among others; issuers, banks and brokers and market data vendors.
  • Nasdaq Nordic comprises approx. 720 companies including its alternative markets (MTFs) First North and offers trading in equities, derivatives, fixed income and more.
  • The trading offering also includes Norwegian large cap equities. Nasdaq Nordic is not a legal entity but describes the common offering from Nasdaq exchanges in Helsinki, Copenhagen, Stockholm and Iceland.

Nasdaq Nordic

Nasdaq Nordic offers a range of listing and trading services for mutual fund products in the Nordic countries. In Sweden, the Nasdaq Nordic Fund Market is an electronic mutual fund service that enables straight through processing of orders and payments between fund distributors and fund companies.

Trading Nordic Fund Market

With the aim of increasing the efficiency for fund distributors and fund companies in the Nordics, Nasdaq offers the Nordic Fund Market, an electronic mutual fund service that enables straight through processing of orders and settlement.

The service gives fund distributors access to a broad choice of mutual funds through one single interface. Currently, the service covers the Swedish market for distributors, but international fund companies are welcome to register their funds to the service if they fulfill the requirement of being registered for sale in Sweden. At present there are over 150 fund companies with more than 3,000 mutual funds available on the Nasdaq platform.

The Nasdaq Nordic Fund Market enables fund distributors and fund companies to:

  • Leverage internal resources
  • Reduce risk
  • Lower transaction cost
  • Communicate according to existing international standard

In order to register mutual funds on the platform a distribution agreement has to be signed between Nasdaq  and the fund company or the appointed distributor for the funds. All mutual funds that are registered on the platform have to be registered for sale in Sweden.

Nordic Fund Market is fully transparent with remuneration levels agreed between Nordic Fund Market and the Fund Companies and do not benefit from the remunerations paid out. The remunerations are sent in full to the Distributors connected to the Service.

Trading with the OMX 30 Index

You can select from a wide variety of binary options. Included in these assets are a number of global indices, enabling traders to take a short-term view on an overall market versus a single stock.

Trading with binary options enables traders to make a short-term prediction on countries from across the globe. One of the key indices in Europe is the OMX Stockholm 30, which includes the top 30 Swedish stocks traded on the Stockholm Stock Exchange.

The OMX Stockholm 30 is regarded highly in the global financial community. Its limited number of components represents firms that have excellent liquidity. This small number of components also helps traders keep an eye on the financial news of the component organizations. By understanding how financial news on the components and index overall impact its short-term price, binary options traders can make educated predictions.

The index is comprised of stocks from a variety of sectors including pharmaceuticals, communications, industrial machinery and banking. Included in the 30 component organizations are firms with a global reach such as Nokia, AstraZeneca and Electolux as well as firms that target the local market such as Swedbank and Skanska.

All of the components of the OMX Stockholm 30 make a strong contribution to the Swedish economy. You have the opportunity to trade with this index through its online platform. Although the index consists of just 30 companies, they span a range of industries, providing an opportunity for traders that are looking for a diversified platform for their trading needs.

Utilizing the OMX Stockholm 30 will help you achieve diversification when executing trades. By taking a view on this dynamic market, you have the opportunity for trading success as you implement their binary options strategy.

OMX30 Dividend Futures

OMXS30 Dividend Futures makes it possible to trade listed cash-settled index futures on the OMX Stockholm 30 Dividend Point Index. The underlying index is calculated, in dividend points, as the running total of ordinary dividends paid by the constituents of the OMX Stockholm 30 Index and is reset to zero once a year after the expiration of the nearest OMXS30 Dividend Futures contract.

Sweden is a hub for innovation, technology and growth. It is a dynamic and interesting country for traders to consider as part of their trading strategy. It is a market value-weighted index and is recognized as the primary benchmark for the Swedish economy. These days you can thus see Swedish Stock providing an indicator of the financial performance across the Scandinavian area of Europe and their exchange as the the primary securities exchange of the Nordic Countries and the world.

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