Nasdaq Implements Stressed Market Conditions for Danske Bank Stocks
- The measures allow market makers to provide quotes using wider spreads amid money laundering allegations against Danske Bank.

American Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges. A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges. Read this Term Nasdaq has had to intervene to stop Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry. Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry. Read this Term from walking away from Danske Bank’s volatile stock. The actions follow the news that the Danish bank is being investigated by US law enforcement agencies in regards to suspected money laundering.
On Friday, Nasdaq put trading of derivatives tied to shares of Danske Bank in a so-called stressed market condition. This means the exchange can allow market makers to provide quotes using wider spreads.
This was the first time the exchange had taken such a measure against the Danish bank, and Mikael Siewertz, product manager at Nasdaq in Stockholm told the Gulf Times that Nasdaq expects similar market conditions today, however, he does think cooler heads may prevail this Monday.
Us Authorities Launch an Investigation into Danske Bank
The volatile stock is in response to rumors that US law enforcement agencies are looking into Danske Bank in relation to money laundering. On Friday, The Wall Street Journal reported that: “The [U.S.] Justice Department, Treasury Department, and Securities and Exchange Commission [SEC] are each examining Danske Bank after a confidential whistleblower complaint was filed to the SEC more than two years ago.”
The bank is accused of facilitating an estimated $150 billion in money laundering flows which were held in non-Estonian customer accounts at the bank’s Estonian branch from 2007 to 2015. The money came from countries such as Russia, Azerbaijan, and Moldova.
The news outlet also reported that: “The whistleblower complaint identified Deutsche Bank AG and Citigroup Inc., both overseen by U.S. regulators, as involved with transactions into and out of Danske Bank’s Estonian branch.”
Citing a person familiar with the matter, The Wall Street Journal said that Deutsche Bank was as a correspondent bank for Danske that handled dollar wire transfers. Citigroup’s Moscow office was allegedly involved with some of the transfers through Danske’s Estonian branch.
Ceo of Danske Bank Ignored Warnings of Money Laundering
According to the Financial Times, the CEO of Danske Bank Thomas Borgen ignored warnings of suspicious transactions. Specifically, he ignored advice to scale back its Estonian branch when initially warned about the money laundering activities.
According to meeting minutes seen by the Financial Times, the CEO was informed back in October 2013, that: "The level of activity in its [Danske Bank’s] Estonian branch from outside the country — mostly from ex-Soviet states and Russia — was higher than that of rivals and ‘needed to be reviewed and potentially reduced’."
However, US authorities have not yet officially confirmed the investigation. Since last year, Danske has been conducting its own internal investigation into the activity in its Estonian branch. According to a notice on Danske’s website, it plans to release the results on September 19. Danish and Estonian authorities have also been looking into Danske Bank.
American Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges. A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges. Read this Term Nasdaq has had to intervene to stop Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry. Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a very high risk and chooses to route the flow to another liquidity provider.Such brokers are typically providing very quick execution, however an inherent conflict of interest is possible due to the fact that the brokers is making the bulk of its profits from client losses.Role of Market Makers in FX IndustryIn the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so these market makers quite literally make the market. In particular, a forex market maker performs three specific tasks.This includes setting bid and offer prices within a given currency pair, committing to accepting deals at these prices within certain constraints, and taking the resulting exposure on to their own book.In terms of accounting for this exposure onto their book, market makers can opt to hedge the exposure with another bank, pending favorable rates. How quickly or slowly, or how much risk they lay off will be at their own discretion.Market makers can make profit through several techniques. If these entities identify enough flow at both sides of their quote, they can simply collect the bid offer spread.Consequently, market makers can net off their exposure. Presently, large banks see huge flows of foreign currency transactions from their operations around the world in a multi trillion-dollar-a-day industry. Read this Term from walking away from Danske Bank’s volatile stock. The actions follow the news that the Danish bank is being investigated by US law enforcement agencies in regards to suspected money laundering.
On Friday, Nasdaq put trading of derivatives tied to shares of Danske Bank in a so-called stressed market condition. This means the exchange can allow market makers to provide quotes using wider spreads.
This was the first time the exchange had taken such a measure against the Danish bank, and Mikael Siewertz, product manager at Nasdaq in Stockholm told the Gulf Times that Nasdaq expects similar market conditions today, however, he does think cooler heads may prevail this Monday.
Us Authorities Launch an Investigation into Danske Bank
The volatile stock is in response to rumors that US law enforcement agencies are looking into Danske Bank in relation to money laundering. On Friday, The Wall Street Journal reported that: “The [U.S.] Justice Department, Treasury Department, and Securities and Exchange Commission [SEC] are each examining Danske Bank after a confidential whistleblower complaint was filed to the SEC more than two years ago.”
The bank is accused of facilitating an estimated $150 billion in money laundering flows which were held in non-Estonian customer accounts at the bank’s Estonian branch from 2007 to 2015. The money came from countries such as Russia, Azerbaijan, and Moldova.
The news outlet also reported that: “The whistleblower complaint identified Deutsche Bank AG and Citigroup Inc., both overseen by U.S. regulators, as involved with transactions into and out of Danske Bank’s Estonian branch.”
Citing a person familiar with the matter, The Wall Street Journal said that Deutsche Bank was as a correspondent bank for Danske that handled dollar wire transfers. Citigroup’s Moscow office was allegedly involved with some of the transfers through Danske’s Estonian branch.
Ceo of Danske Bank Ignored Warnings of Money Laundering
According to the Financial Times, the CEO of Danske Bank Thomas Borgen ignored warnings of suspicious transactions. Specifically, he ignored advice to scale back its Estonian branch when initially warned about the money laundering activities.
According to meeting minutes seen by the Financial Times, the CEO was informed back in October 2013, that: "The level of activity in its [Danske Bank’s] Estonian branch from outside the country — mostly from ex-Soviet states and Russia — was higher than that of rivals and ‘needed to be reviewed and potentially reduced’."
However, US authorities have not yet officially confirmed the investigation. Since last year, Danske has been conducting its own internal investigation into the activity in its Estonian branch. According to a notice on Danske’s website, it plans to release the results on September 19. Danish and Estonian authorities have also been looking into Danske Bank.