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

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.

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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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 Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term 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.”