Nordic Auctions (INET) -

efficient price formation and deep liquidity

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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 
  • 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.

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.

Auctions make up a large part of trading turnover
20%
of the total Nordic lit order book turnover is traded in auctions.
auction, hands up
Auction schedules & Examples
See the Nordic Auction fact sheet for auction schedules and detailed examples.
Get the details
Auctions make up a large part of trading turnover
20%
of the total Nordic lit order book turnover is traded in auctions.

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Nordic Equities

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