Nasdaq has operated a regulated market for bonds and bills in Iceland since 1986. Throughout this period it has endeavored to increase the efficiency of this market by steadily improving both the technical framework and trading functionality.
The transparency of the Icelandic market is among the best of any international fixed income markets, since the level of on-exchange trading is very high and members are required to publish all trades within a few minutes. The high proportion of on-exchange trading can be attributed to the active market making for benchmark bond classes and covered bonds, which keeps their liquidity high.
Fixed Income Trading
All major types of debt instruments are listed on our market, including government bonds, covered bonds, corporate bonds, mortgage bonds, convertibles and structured products. The majority of trading takes place in the benchmark classes, which are primarily Nominal Treasury Bonds (RIKB) and inflation-linked Treasury Bonds (RIKS), or around 80% whereas covered bonds account for about 10% of trading.
Icelandic Fixed Income Market
In addition to the Icelandic Fixed Income Main Market, Nasdaq Iceland also operates the First North Iceland Fixed Income market which is an MTF. The listing requirements on First North are lighter than on the Main Market, cost of listing lower and the listing process in general shorter. First North is open to issuers who do not prepare their accounts according to International Financial Reporting Standards (IFRS).
Icelandic Fixed Income Indexes
In order to facilitate the comparison of interest rate levels and market value, Nasdaq Iceland calculates twelve fixed income indexes for benchmark classes. The index offering consists of market weighted indexes, both capped and total amount, and fixed duration indexes.
Nasdaq Benchmark bonds indexes:
- Nasdaq OMX Iceland Benchmark Bonds
- Nasdaq OMX Iceland Nominal Benchmark Bonds
- Nasdaq OMX Iceland Inflation-linked Benchmark Bonds
- Nasdaq OMX Iceland Benchmark Bonds – Total Amount
- Nasdaq OMX Iceland Nominal Benchmark Bonds – Total Amount
- Nasdaq OMX Iceland Inflation-linked Benchmark Bonds – Total Amount
Fixed duration indexes
- 3M OMXI3MNI
- 1Y OMXI1YNI
- 5Y OMXI5YNI
- 10Y OMXI10NI