Nasdaq Implements Stressed Market Conditions for NOKIA Derivatives (256/24)

Nasdaq has activated stressed market conditions for Nokia Oyj (NOKIA) derivatives, effective through the close of trading on August 29, 2024. This measure is triggered when the underlying stock experiences significant intraday price swings or when other factors introduce substantial pricing uncertainty in the derivatives market.

When stressed market conditions take effect, market makers gain the flexibility to widen their bid-ask spreads to twice the standard level. This adjustment reflects the elevated market risk and helps protect liquidity providers during periods of heightened volatility.

What This Means for Traders

The implementation of this protocol on NOKIA derivatives (256/24) directly impacts how options and other derivative contracts are priced and traded. Wider spreads mean larger costs for traders entering or exiting positions, but also provide market makers with appropriate compensation for the risks they’re taking during volatile periods.

Key Details

• Effective Period: Through close of business August 29, 2024
• Affected Instrument: NOKIA derivatives
• Measure Type: Stressed market conditions protocol
• Spread Adjustment: Double the normal spread width permitted

For additional contact information and specific details regarding this market condition designation, please refer to the official documentation.

This announcement reflects Nasdaq’s market oversight policies and does not necessarily represent the views of all market participants.