Innovation on Demand
LATEST TRADING STATISTICS - MAY 2019
Why Auction on Demand
A MiFID II Compatible Solution
About the Service
Periodic Auctions - On demand
In the Auction on Demand order book, a seller or buyer may place an order at any time, entering it into a periodic auction. Auction on Demand is active throughout the day when the lit book is in continuous trading and is triggered on demand, when matching orders are found. 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 and Market 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.
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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.