Innovation on Demand
Why Auction on Demand
A MiFID II Compatible Solution
About the Service
How it Works
Auctions on Demand take place throughout the day when the lit book is in continuous trading and is triggered on demand, when there are orders that can match. In the Auction on Demand order book, a seller or buyer may place an order at any time, entering it into a periodic auction. When a matching bid or offer comes in, an auction uncross is triggered, and price and volume are made public.
The service comes with a number of safety features, including randomization, speed bump and minimum execution size.
What’s in it for you?
- Separate from the lit order book with no impact on continuous lit trading
- Effective auctions triggered on-demand by crossing orders
- Enables trading at or within the Primary Best Bid Offer (PBBO)
- Executes orders with low market impact
- Open yet discreet trading – individual orders are not published
- Multiple safety features minimizing risk for information leakage
- Price discovery mechanism maximizing traded volume
- Unique Internal(broker)/Size/Time priority ensuring effective execution for larger orders
- Pre-trade transparency: Indicative Price and Quantity in real time
- Post-trade transparency: Trades in real time, no counterparty, separate MIC code on execution reports
- Executions will contribute to official member market share
- Orders pegged to the Bid, Mid and Offer
- Limit orders
- Randomized uncross after 25-100 ms
- Speed bump on Cancels and Modifications secures real trading interests in the book
- Minimum Execution Size (MES) protection
- Limit guard price protection
- EBBO collar protection
- Resilient trading surveillance
Auctions are triggered on demand by crossing orders. The duration of the auction is 25 ms fixed and a random 0-75 ms, meaning the auction will last for maximum 100 ms. The auction will uncross at the price where most volume can be traded.
Available in June 2017
Auction on Demand will be launched on June 7, 2017. Testing begins March 20, open for all members.
Listen to our recorded webinar
Learn more about Auction on Demand. Register to access the webinar from March 21, 2017.
The webinar covers:
- Why has Nasdaq Launched Auction on Demand Service?
- What are the benefits of Auction on Demand?
- How does it work?
- Question and Answers.
We are happy to support you and answer any questions. Register here and we will contact you.
As a global leader in market technology, with a strong presence in the Nordics, Nasdaq is well positioned to help our clients stay on top of an increasingly complex European financial market.