Nasdaq: stressed market conditions in derivatives on Intrum

On March 7th Nasdaq has decided to call for stressed market conditions in derivatives on Intrum, one of the main player in debt purchasing and debt collection with headquarter in Sweden – For four hours, after which time an assessment of market conditions will be made to determine if stressed market conditions are still valid. Stressed market conditions in derivatives is called for when the underlying asset to a derivative experience high and short term intraday volatility or when other factors causes high uncertainty in the pricing of derivatives. When stressed market is called for it means that market makers are allowed to quote prices with double the normal spread.

The notion of stressed market conditions is not novel but is seldom utilized, rendering Nasdaq’s choice especially remarkable. This is activated when the underlying asset of a derivative,  demonstrates swift and substantial price shifts within the trading day or when other factors contribute to increased uncertainty in derivative valuation. By permitting a broader spread in quoted prices, Nasdaq seeks to offer market makers a cushion against rapid market fluctuations, thus promoting a more resilient trading atmosphere.


Roberto Sergio

Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.

Credit Village is a leading company in the field of specialized publishing and event organization for the credit management industry and in all issues and aspects related to the NPE market, including ESG , M&A, Real Estate etc. Credit Village has been the first company in Italy to bring the culture of the credit management industry to the press, events and online, creating the largest community in the sector around itself.