Nordic LiS Block
Efficient execution of large orders directly in central order book. Execute large non-displayed block orders within the central lit order book.
Overview
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.
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.
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 Size for LiS
The order size for classification as a Large-in-Scale order according to MIFID II varies depending on the average daily turnover for the equity.
Minimum size order to qualify as large in scale compared to average daily turnover (ADT) in 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.
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.