Auctions at opening and closing offer robust pricing and volume discovery.
Liquidity and Higher Trade Sizes
Nordic Auctions offer deep liquidity and are suitable also for larger than average trading interests.
More than 20% of the total lit order book turnover is traded in Nordic Auctions. The average trade size is multiple times higher in auctions compared to continuous lit order book trading.
Trade at Closing Price
Closing auctions offer an excellent opportunity if you want to trade at the closing price.
The Auction Process
Nordic INET Auctions are divided into two phases: order management and uncross.
During the order management phase, orders enter the auction order book. Individual orders are not displayed in the public data feed. Net order Imbalance Information (NOII) is published in real time to provide pre-trade transparency.
Uncross occurs at a random time during a short period at the end of the order management stage. The random time for uncross protects from gambling attempts.
Auction Order Types
- Limit orders
- Market orders
- Special auction order types, for example Limit On Close (LOC) that is activated automatically in the closing auction.
Net Order Imbalance Information
Nasdaq Nordic auctions offers pre-trade transparency through Net Order Imbalance Information. Individual orders are not displayed in the public data feed.
Pre-trade transparency with real-time Net Order Imbalance Information (NOII) includes:
- Equilibrium price (EP) or Best Bid and Ask for uncrossed books
- Paired quantity
- Imbalance direction
Order Management Phase
During the order management, orders will enter the auction Order book.
Orders can be sent as Limit Orders or Market Orders. Tie an Order to a specific auction using special auction Order types with the Cross trade flags. Limit On Close (LOC) is an example of an order that will be activated automatically in the closing auction.
The time of the uncross is randomized within a short period at the end of the order management stage.
Randomized uncross strengthens the auctions credibility and mitigates gambling possibilities.
Benefits with Nordic Equity Auctions
Transparent and robust auctions
The auctions offer a very robust price formation process where Indicative equilibrium price is fully transparent in the Net Order Imbalance Information (NOII) during the order management period.
Efficient Trading of Larger Blocks
Larger block orders may execute more efficiently in the closing auction due to higher average execution size.
Trade at the Closing Price
Closing auctions offers an outstanding liquidity pool with the opportunity to trade at the closing price.
Fee list - Nasdaq Nordic Cash Market Download Fee list - Nasdaq Nordic Cash Market
Fee List - Algorithmic Trading Services Download Fee List - Algorithmic Trading Services
Factsheet - INET Nordic Auctions Download Factsheet - INET Nordic Auctions
Nasdaq Nordic Technical Services Pricelist - Valid from April 1, 2019 Download Nasdaq Nordic Technical Services Pricelist - Valid from April 1, 2019
- Periodic Auctions on Demand
- Minimized Market Impact
- Multiple Safety Features
- 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
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
- Pay as You Go
- Includes All Necessary & Expected Functionality
- Web-based – No Local IT Infrastructure
Pre-trade Risk Management for INET NordicComplete MIFID II proof pre-trade risk protection with order level control of trading.
- Low Latency
- Facilitates Sponsored Access
- Quick & Easy Implementation
Trade reporting of manual cash equity tradesAny trades that occur outside Nasdaq Nordic Central Limit Order book, must be reported to the relevant order book.
- One-Party Report
- Two-Party Pre-Locked Report
- Break Locked-in Trade or Cancel Trade
- Routing to the market with best EBBO
- Low latency for accurate routing
- Easy access through existing connectivity
- Efficient execution and minimized market impact
- Cost Efficient
- Broker Neutral