Nasdaq Nordic Rolls Out Auction on Demand, Shoring Up Transparent Execution

Auction on Demand will emphasize a wide range of execution challenges for larger orders.

Nasdaq Nordic (Nasdaq: NDAQ), a subsidiary of the exchange operator that provides securities in the Nordic and Baltic countries, has implemented Auction on Demand, a new market feature designed to satisfy MIFID II obligations, per a company statement.

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Nasdaq Nordic’s Auction on Demand is slated for a June 7, 2017 release, helping streamline and fulfill the upcoming MIFID II legislation. This will also meet requirements for a periodic auction-trading model, whilst offering Nasdaq’s existing trading clients access to a tightly regulated alternative to Over-the-Counter (OTC) and darkpool trading.

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Transparency Measures in Focus

Presently, approximately half of all equity trades executed in Europe are carried across ‘lit’ order books, enabling traders to see the amount of liquidity posted on each bid and offer. With the eventual passage of MiFID II regulations in 2018, the majority of equity trading will be required to take place across these markets, fostering greater transparency for equities traders.

Auction on Demand was developed to cater specifically to professional investors and will emphasize a wide range of execution challenges for larger orders – the platform will operate in tandem with Nasdaq Nordic’s lit order books, and is triggered on-demand. Auction on Demand is slated to be available for all members trading shares on the main markets across Stockholm, Copenhagen, Helsinki and Iceland.

According to Henrik Husman, Vice President (VP) of Cash Equities at Nasdaq, in a recent statement on the upcoming platform: “Auction on Demand provides a new way of executing large orders, without disrupting the market, in a regulated and transparent trading environment, making Nasdaq Nordic an even more secure and liquid marketplace.”

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