Periodic auctions are used as an alternative to OTC and dark pool trading.
Periodic auctions execute separately from the lit order book with no impact on continuous lit trading. No information about individual orders is published, making Auction on Demand ideal for large or strategically important orders where you want to keep information about trading interests confidential.
Auctions are triggered on demand as soon as two crossing orders are found by the system. An auction starts with a fixed 25 ms period, followed by a random period of between 0 and 75 ms, so that the auction stays open for a maximum of 100 ms. During this time other bids may enter the system and take precedence.
The auction will uncross at the price where the most volume can be traded. Price and executable quantity are published in real time.
Priority model: Internal (broker)/Size/Time.
Auction on Demand is available for shares traded on Nasdaq Stockholm (including Norwegian shares), Nasdaq Copenhagen, Nasdaq Helsinki and Nasdaq Iceland.
Confidentiality & Transparency
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 contribute to official member market share. Auction on Demand trade reporting fulfils the MIDIFII transparency requirements.
Connectivity and Trading Hours
Auction on Demand can be accessed via FIX, OUCH and the Nordic Workstation during lit order book trading hours.
Interested in AOD statistics? Please reach out to your sales representative
Auction on Demand runs in parallel to our lit order books. No information about individual orders are published. We have also implemented several safety features to ensure that minimizes risk for information leakage.
- Randomized uncross after 25-100 ms
- Speed bump on cancels secures real trading interests in the book
- Speed bump on modifications of order when reducing position
Orders can be entered as Pegged, Limit or Market orders, with optional limit price protection and MES protection.
- Pegged orders only executed at their pegged price according to the peg instruction (“at-priced”)
- Limit and Market orders executes at or within the Primary Best Bid Offer (PBBO).
- Optional Limit Price Protection
- Time in Force: DAY, GTT, IOC, GFA
- MES protection. One opposite order needs to be equal or larger than MES, to prevent aggregation or "bulking"
Key Benefits with Auction on Demand
Periodic Auctions on Demand
Benefit from the Auction model at any time during trading hours. Auctions are triggered on demand, whenever matching orders are found.
Minimized Market Impact
Minimize information leakage for large or strategically important trading interests. Only the indicative price and quantity published pre-trade. Post-trade reporting in real time, no counterparty information & separate MIC codes on execution reports.
Multiple Safety Features
Randomized uncross and speed bumps on cancels and modifications secures that only real trading interests are entered in the book.
Fee List - Nasdaq Nordic Cash Market (valid from October 01, 2020) Download Fee List - Nasdaq Nordic Cash Market (valid from October 01, 2020)
Fee List - Algorithmic Trading Services Download Fee List - Algorithmic Trading Services
- Excellent Liquidity
- Minimized Market Impact
- The Stub Remains Hidden
Lit TradingKey Features
Lit TradingOne common gateway for trading Swedish, Finnish, Danish, Icelandic and Norwegian equities.
- Best Liquidity for Nordic Shares
- Best EBBO for Nordic Shares
- Largest Order Depth at Best Bid
- Transparent and robust auctions
- Efficient Trading of Larger Blocks
- Trade at the Closing Price
- Efficient execution and minimized market impact
- Cost Efficient
- Broker Neutral
- Pay as You Go
- Includes All Necessary & Expected Functionality
- Web-based – No Local IT Infrastructure
Nordic@Mid DarkpoolMid-point matching for reduced market impact costs - as well as a price advantage.
- Reduced market impact cost
- Price improvement
- Efficient order execution