Nordic LiS Block

efficient execution of large orders directly in the Central order book

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Execute large, non-displayed block orders within the central lit order book.

Large In scale illustration

Nordic Large-in-Scale (LIS) orders combine confidentiality with access to a marketplace with excellent liquidity. Any order that meets the MIFID II LIS criteria can be entered in Nasdaq Nordic’s central order book as a non-displayed block order.

Nordic LiS Block orders will interact with all lit orders as well as other non-displayed orders. They remain non-displayed until executed. Block orders that have been partially filled remain hidden even after the remaining order size falls below the LIS order size.

Use Nordic LiS Block orders to reduce your overall cost of trading and as an alternative to dark pool trading.

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Trading model

Continuous matching. Hidden orders are valid also during auctions. Pegged orders trade in auctions at their last pegged price.

Pre-trade transparency

Orders remain non-displayed, even when partially executed to a remaining volume under the Large-in-Scale criteria.

Post-trade transparency

Trades in real-time, follows transparency rules as regular lit orders.

Connectivity

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

Matching priority in the central lit order book

Price, Internal, Display, Time.

Hidden Limit Orders

Orders meeting the MiFID II Large-in-Scale (LiS) criteria can be entered in the central lit order book as non-displayed limit orders.

  • Orders above LiS can 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.
  • Supports minimum acceptable quantity (MAQ) matching.

Hidden Pegged Orders

Large-in-Scale orders can also be entered in the central lit order book as non-displayed pegged orders.

  • Pegging orders can be entered as Non-displayed as Market-, Primary-, or Mid-Pegging, with a possible Limit Price protection.
  • By using the Pegging order types, you thereby let the INET trading system 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, which is commonly used in dark pools, it is also a possibility to peg to the best Bid or Ask including an incremental difference (expressed in ticks). I.e. it is possible to peg a hidden buy order to the best bid price + 1 tick.
  • Supports minimum acceptable quantity (MAQ) matching.

Order Sizes that Meet the LiS Criteria

The order size necessary for classification as a Large-in-Scale order according to MIFID II varies depending on the average daily turnover for the equity. See the below table for details.

Minimum size order to qualify as large in scale, compared to average daily turnover (ADT) (EUR):

ADT < 50,000: 15,000

50 000 ≤ ADT < 100 000: 30,000

100 000 ≤ ADT < 500 000: 60,000

500 000 ≤ ADT < 1 million: 100,000

1 million ≤ ADT < 5 millions: 200,000

5 millions ≤ ADT < 25 millions: 300,000

25 millions ≤ ADT < 50 millions: 400,000

50 millions ≤ ADT < 100 millions: 500,000

ADT ≥ 100 millions: 650,000

Benefits with Large-in-Scale orders

Excellent Liquidity

Your non-displayed order interacts with all lit orders in Nasdaq Nordic’s central order book, as well as other non-displayed Large-in-Scale orders.

Minimized Market Impact

Non-displayed orders remain hidden up until execution. By keeping your trading interest confidential, market impact is minimized, and the total cost of trading reduced.

The Stub Remains Hidden

Nordic LiS block orders executes against one order at a time, with post-trade transparency in real-time, but the stub stays non-displayed until filled - even when the remaining order size falls below the LiS criteria.

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