Rules and Regulation

    Nordic Auctions (INET)

    Efficient price formation and deep liquidity

    Auctions at opening and closing offer robust pricing and volume discovery.

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    Liquidity and Higher Trade Sizes

    Nordic Auctions offer deep liquidity and are suitable also for larger than average trading interests.

    More than 30% 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.

    Nordic Auctions offer deep liquidity and are suitable also for larger than average trading interests.

    More than 30% 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.

    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.

    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.

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    Auction Order Types

    • Limit orders
    • Market orders
    • Special auction order types such as Limit On Close (LOC) that are 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
    • Imbalance direction

    Order Management Phase

    During the order management, orders will enter the auction orderbook.

    Orders can be sent as limit or market orders. Tie an order to a specific auction using special auction order types with cross trade flags. Limit on close (LOC) is an example of an order that will be activated automatically in the closing auction.


     

    Randomized Uncross

    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.

    Auction Schedules and Examples

    Consult the Nordic Auction factsheet for auction schedules and detailed examples.

     

    Learn more ->

    30%

    of the total Nordic lit order book turnover is traded in auctions.

    Auctions make up a large part of trading turnover.

    Contact Us

    Contact our European Equity Sales teams

    Resource Center

    Nordic Equities

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