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Nordic LiS Block

A proven and MiFID II-ready service, designed for institutional investors looking to efficiently search and execute their large-sized orders directly in the Central Limit Order book.

Why Large in Scale

The overall aim of MiFID II is to increase investor protection, fairness and transparency on the European markets. As a global exchange and technology provider, Nasdaq’s role is to help investors, issuers and other participants in the financial eco-system to navigate the complex new regulatory landscape towards the many benefits a well-regulated and transparent environment brings to individuals, companies and economies. With the Nordic Large in Scale (LiS) Block, Nasdaq has developed a service designed to help institutional investors to more efficiently execute large, non-displayed block orders within Nasdaq Nordic’s lit order books.

With access to the Nasdaq central lit order book, institutional investors using the Nordic LiS Block service are provided with a maximized opportunity for effective trading of their large orders, as that order book concentrates the vast majority of all available liquidity in Nordic shares.
End of the Block

Efficient handling of orders above the Large-in-Scale criteria

Post MiFID II, the transparency requirements on security transactions in Europe will be increased. The double volume caps being introduced with MiFID II will limit most of the dark liquidity and trading seen today, but will not be applicable as long as the order qualifies under the Large-in-Scale-waiver (LiS). By allowing buy-side investors to use specifically designed order types under the waiver, which are not falling under the transparency requirements, Nasdaq Nordic LiS Blocks will thereby ensure that all large institutional orders will be able to be executed in the most efficient manner.

Nordic LiS Block - a proven and MiFID II-ready service

Nasdaq has developed Nordic LiS Block – a proven and MiFID II-ready service for efficient handling of orders above the Large-in-Scale criteria*, enabling investors to efficiently place non-displayed orders in the central lit order book. This ensures that the order interacts with all lit and other non-displayed orders, while the maintained level of confidentiality helps to minimize market impact and reduce the total cost of trading.

FIRST IN LINE, WITH FULL CONTROL

By adding passive liquidity into the central lit order book, large, non-displayed orders are at all times exposed to any aggressive order flow crossing the spread, and always with the option to let the order system dynamically put your order first in line to be executed. The Nordic LiS Block order trades against one order at a time, but never below the minimum acceptable quantity size of your choice, ensuring optimal control over your exposure.

Product details

Download the Nordic Large in Scale block Fact sheet


ORDER SIZES MEETING THE MIFID II LARGE-IN-SCALE CRITERIA

Average daily turnover (ADT) in EUR Minimum size of orders qualifying
as large in scale compared with
normal market size in EUR
Number of companies per
Nasdaq Nordic Exchange in segment
ADT < 50 000 15 000 XSTO 56
XCSE 64
XHEL 51
171
50 000 ≤ ADT < 100 000 30 000 XSTO 34
XCSE 19
XHEL 19
72
100 000 ≤ ADT < 500 000 60 000 XSTO 94
XCSE 20
XHEL 30
144
500 000 ≤ ADT < 1 mill 100 000 XSTO 29
XCSE 5
XHEL 11
45
1 mill. ≤ ADT < 5 mill. 200 000 XSTO 56
XCSE 15
XHEL 12
83
5 mill. ≤ ADT < 25 mill. 300 000 XSTO 41
XCSE 15
XHEL 13
69
25 mill. ≤ ADT < 50 mill. 400 000 XSTO 10
XCSE 7
XHEL 2
20
50 mill. ≤ ADT < 100 mill. 500 000 XSTO 11
XCSE 4
XHEL 6
21
ADT ≥ 100 mill. 650 000 XSTO 16
XCSE 6
XHEL 3
25

ORDER TYPES TO TRADE NON-DISPLAYED

Hidden Orders

  • Orders above LiS may be entered as Hidden Limit orders. 
  • Non-displayed Limit Orders are hidden from other participants than the participant entering it. 
  • The Hidden Order stipulates a maximum purchase price or minimum selling price, and is ranked after visible Lit Orders at the same price.

Pegging Orders

  • Pegging orders may be entered Non-displayed as Market-, Primary-, or Mid-Pegging, with a possible Limit Price protection. 
  • By using the Pegging order types, you authorize the INET trading system to automatically adjust the price of the Order based on changes in the visible Best Bid or Offer Price. This feature is called pegging, since the price of the Order is pegged, or defined, by a reference price. 
  • Besides the Mid-point Peg order type, commonly used in dark pools, it is also possible to peg to the best Bid or Ask including an incremental difference (expressed in ticks). This makes it possible to peg a hidden buy order to the best bid price + 1 tick. 
  • The types of pegging and the incremental difference (expressed in ticks) from the Best Bid Offer may be used in the following fashion for Bids and Offers.

Pegged Order type Bids: Negative price difference
Offers: Positive price difference
Zero difference Bids: Positive price difference
Offers: Negative price difference
Primary Peg Displayed and Non-displayed Orders Displayed and Non-displayed Orders Non-displayed Order
Market Peg Displayed and Non-displayed Orders
For displayed Orders, price will be capped by the current BBO
Available, but converted to an IOC Available, but converted to an IOC
Mid-point Peg Non-displayed Order Non-displayed Order Available, but converted to an IOC

Technical Details

Placement of non-displayed block orders in the Lit order book, exposing them for both Lit and LiS crossing order flow. Trading unaffected by MiFID II double volume caps. Orders are fully hidden, but any Nordic LiS Block trade will be published in real time. MiFID II post trade flagging and the fact that there is an execution on a non-published order will though indicate your hidden order. There is however no way for anyone else to see any order details. 

Trading model: Continuous matching. Hidden orders are even valid during any Auctions. Pegged orders trade in auctions at their last pegged price. 

Connectivity: FIX (Limit and Pegging) and OUCH (Limit). No separate port needed 

Pegging to Primary Exchange BBO: Mid, Bid, Ask and Tick increments (+/-). No pegging over OUCH 

Pre-trade transparency: Non-displayed orders. Any stub falling behind LIS remain hidden 

Post-trade transparency: Trades in real time, voluntary post trade transparency 

Matching priority in the Central Lit Order Book: Price, Internal, Display, Time 

Time In Force for Nordic LIS Block orders: GTT, DAY, IOC, GTC 

Minimum Acceptable Quantity (MAQ): Yes (allows aggregation on passive side)

Contacts and events

Learn more about Large in Scale. The webinar covers: 

  • How will the Equity trading landscape change with MiFID II? 
  • What is Nasdaq Nordic LiS Block and how does it work? 
  • Benefits with using the Nordic LiS Block service? 
  • How to get started?

If you want a shorter introduction to the service, watch our 1,5 minute video to learn more.


Listen to our Recorded Webinar >

Learn more about Large in Scale.

Watch the film >

Watch the video to learn more about Nasdaq Nordic LiS Block service.

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