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Auction on Demand

Are you prepared to meet the MIFID II requirements? 

With Auction on Demand you get an alternative to dark pool and OTC trading designed to meet the new regulation.

Auction on Demand

An innovative alternative to dark pool and over the counter trading - designed to meet MiFID II requirements.

Innovation on Demand

Developed with professional investors in mind, Auction on Demand addresses a broad range of execution challenges for larger orders. It runs in parallel to Nasdaq Nordic’s* lit order books, and is triggered on demand.
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Why Auction on Demand

A MiFID II Compatible Solution

Today, only half of equity trading across Europe is currently carried on lit order books, allowing all traders to see the amount of liquidity posted on each bid and offer. After the implementation of MiFID II regulations in January of 2018, it is likely that the majority of equity trading will be required to take place on lit markets.

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.

Product details

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

product details

Technical Highlights

  • 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

product details

Security Features

  • 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

Product details

Overview


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.



Auction Overview

 



Details

Market Scope

  • Shares traded on Nasdaq Stockholm (including Norwegian shares), Nasdaq Copenhagen, Nasdaq Helsinki and Nasdaq Iceland
  • ETFs and investment funds on Nasdaq Copenhagen

Trading Hours

  • Monday to Friday, during lit order book continuous trading

Access

  • FIX, OUCH and Nordic Workstation (no separate port needed) 




Market Data

  • ITCH and GCF-TIP market data are available. The real time data feeds show the indicative auction price and executable quantity

Order Types

  • Pegged orders only executed at their pegged price according to the peg instruction ("at-priced")
  • Limit orders executes at or within the Primary Best Bid Offer (PBBO)
  • Optional Limit Price Protection
  • Time in Force: DAY, GTT
  • MES protection. One opposite order needs to be equal or larger than MES, hence no aggregation or "bulking"

Timeline

Available in June 2017

Auction on Demand will be launched on June 7, 2017. Testing begins March 20, open for all members.

events

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.

Interested?

We are happy to support you and answer any questions. Register here and we will contact you.


* Nasdaq Nordic is not a legal entity but describes the common offering from the following exchanges Nasdaq Helsinki Ltd, Nasdaq Copenhagen A/S, Nasdaq Iceland h.f. and Nasdaq Stockholm AB.

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.

The Member Portal allows members to manage access, accounts, ports and configurations

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