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Bigger Market. Bigger Index. C25 is the Future .

With tremendous growth, Nasdaq Copenhagen switches its lead index. Learn more from the President of Danish Exchange.

Bigger Market. Bigger Index. C25 is the Future

C25 Index Announcement

The Nasdaq Copenhagen Exchange is switching leading index to the broader Copenhagen 25 index (OMXC25). We caught up with exchange head and VP, European Equities & Derivatives, Nikolaj Kosakewitch to get the inside scoop on blue chip indexes, equity market developments, and the visibility factor in Nasdaq’s capital markets.


Q: So Nikolaj, it’s far from every day that a market changes its leading index. What led you to that decision?

Let me answer that with a little background colouring: bigger markets require bigger indexes. Nasdaq’s equity market in Denmark has seen tremendous growth in what we call our silent revolution.

Over the past five years, the listed market capitalization on Nasdaq’s Danish main market has more than doubled from DKK 1,300 billion to DKK 2,900 billion, the number of listed large cap shares has increased from 24 to 42, and while volumes have generally been shrinking on most equity markets, liquidity measured in turnover has doubled from DKK 2.4 billion in average daily turnover to DKK 5.8 billion.

This is a fundamental change in the Nasdaq Copenhagen equity market that calls for a fundamental change to our blue chip index in order to maintain a truly representative and tradable index.

Q: What is it with indexes that is so important?

Markets move the world, and blue chip indexes are the bellwethers of the markets. When people ask how the markets are doing, they look to our indexes for answers. Contrary to most exchanges, Nasdaq develops, maintains and calculates its own indexes. This is an important part of being a market operator, since the index often is the market in public perception. So being able to develop and create our own indexes gives us great advantage and control of our own markets and is a visibility factor for our listed companies.

To give you an idea, a couple of years ago we wanted to highlight the quality and liquidity of our Nordic junior market, Nasdaq First North, which has seen an unparalleled boom in listings lately. So we decided to introduce the Nasdaq First North 25 index to promote the biggest and most traded growth companies in the Nordics.

Q: How will the switch to the C25 from the C20 affect investors?

An index with 25 shares will better reflect the mood and movement of the whole market and minimize single stock or single sector impact. This will improve the bellwether function of the flagship index, and create better investment products for the investor community as the new blue chip index will offer broader sector representation, while still retaining the intrinsic value of a defensive index.

Q: How do you trade an index?

Indexes are central to some of the most traded products in any developed market besides equities. Options, futures, ETPs, Nordic investment funds are for most part built with an index as underlying. When trading an index you are not interested in the price development of a single share, but that of a market or a basket of shares defined by either industry sector or liquidity. This is a cost efficient way for an investor to invest according to his or her expectations to the development of a basket of shares without having to go out into the market and buy each single share.

Q: Will there also be a new blue chip index future corresponding to the C25?

Yes, glad you asked. C25 is the future. When we switch blue chip index we are also switching the corresponding index future to be the C25 index future. We already indtroduced the first futures and options contracts in June 2017, and during December we are transitioning existing open interest in the C20 CAP futures and options into the C25 futures and options. To further support the launch of the C25 futures and options, Nasdaq has introduced a liquidity provider program in the C25 index futures, and a fee holiday where all transaction fees in C25 futures and options will be waived until June 30, 2018.


Download the C25 Factsheet >

Information for Professional Investors available here >

Information for Retail Investors can be found here >


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Get a copy of the C25 Factsheet
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