Nasdaq Copenhagen launches new closing price trading phase

Market participants trading Nasdaq Copenhagen and First North Denmark markets will have ten-minute window to trade at closing auction price.

Nasdaq Copenhagen has introduced a ten-minute phase for market participants to continue trading after the lit order book closing auction, following increased investor demand.

Market participants trading Nasdaq Copenhagen and First North Denmark markets will be able to send orders during the ten-minute trading window, known as Trading@ClosingPrice, which will be continuously matched at the closing auction price.

“Trading@ClosingPrice has been on the wish list for some time in the Danish market from both sell- and buy-side investors alongside a considerable share of our non-Nordic market participants,” said Nikolaj Kosakewitsch, president of Nasdaq Copenhagen and vice president of European equity sales. “Trading@ClosingPrice is a trading functionality that creates additional liquidity and matching opportunities in a lit, monitored and regulated environment.”

Nasdaq added that closing auction turnover on the Danish stock exchange currently accounts for a growing share of the average daily turnover. The new closing price trading phase will provide alternative opportunities for investors seeking end of day price.

Rolf Mølkjær, head of trading at Nordea Asset Management, commented that the ten-minute phase will also increase matching opportunities for investors are not necessarily looking to enter their full order size into the closing auction.  

“Instead, this offers an opportunity to continue to match more volumes at the fixed price set in the closing auction. In short, this is an excellent new opportunity for investors who want to tap additional liquidity after a fixed and fair auction equilibrium price has been found and thereby get the opportunity to get their bigger sized order fully done on the day,” Mølkjær added.