Today Nasdaq is launching an innovative new market feature, Auction on Demand – designed to fulfill MiFID II transparency requirements.
Since the announcement in December 2016, several Independent Software Vendors (ISV’s) have signed up for the service and are ready to support trading from start. These include FIS Front Arena, Itiviti, Fidessa and Vitec Aloc.
During the spring, the service has been extensively tested and the reception among members has been very good.
“We are happy to support Nasdaq on the launch of Auction on Demand,” says Sven Andersson, Head of Electronic Execution at SEB. “We believe that the service will help us handle large orders in a better and more efficient way. With MiFID II just around the corner, the need for trading services compliant with the new regulatory landscape is strong, and we believe that Auction in Demand is one of the better ways to be prepared.”
Some product highlights include an innovative price discovery mechanism, unique internal (broker)/size/time priority and multiple safety features.
“After several months of hard work by the Nasdaq team, I am proud to finally hit the launch button for Auction on Demand,” says Henrik Husman, Vice President, European Cash Equities at Nasdaq. “We believe that there is a demand for a trading service that incorporates internal priority and other innovative features into an periodic auction model ready for a post MiFID II trading landscape. The strong group of members and ISV’s supporting the service from launch is a strong indication that we have made the right assessment.”
Auction on Demand will be available for trading in shares on Nasdaq Stockholm (including Norwegian shares), Nasdaq Copenhagen, Nasdaq Helsinki and Nasdaq Iceland as well as ETF’s and investment funds on Nasdaq Copenhagen.