IT – INET Nordic – Reminder: Reclassification of Danish Investment Funds to Exchange Traded Funds (48/18)

As previously communicated in IT notice 42/18, Nasdaq Copenhagen will reclassify the Danish Investment Funds (UCITS Funds) traded on XCSE to follow the transparency rules set for Exchange Traded Funds (ETF). This change is regulatory driven as MiFID II regulation classifies Investment funds having a market maker as ETFs from the transparency perspective. 

In order to comply with the new classification, the Investment Funds having a market maker falls under MiFIR identification “ETFS” instead of “OTHR”, which is applied currently for the affected instruments. Furthermore, part of the Alternative Investment Funds (AIF) will be classified as shares and hence falls under MiFIR identification “SHRS”. Investment Funds and AIFs which do not have a market maker will continue to have MiFIR identification “OTHR”. Investment Funds and AIFs with MiFIR ID “OTHR” are excluded from transparency regulatory reporting set by the MiFID II regulation.