Nasdaq OMX Europe to launch dark pool

Nasdaq OMX Europe, the multilateral trading facility (MTF) owned by exchange group Nasdaq OMX, is planning to launch a pan-European dark pool, called NEURO Dark, on 27 April.
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Nasdaq OMX Europe, the multilateral trading facility (MTF) owned by exchange group Nasdaq OMX, is planning to launch a pan-European dark pool, called NEURO Dark, on 27 April.

NEURO Dark will use a reference price system based on best bid and offer prices, which means it will be able to trade orders of all sizes without displaying pre-trade data. The platform will trade around 800 of the most actively-traded European blue-chip stocks.

The launch schedule is subject to discussions with UK financial regulator the Financial Services Authority.

While it will be a separate platform to Nasdaq OMX Europe, NEURO Dark will use the same INET trading technology. It will also employ smart order routing functionality, so any orders not matched in the pool will be routed to other non-displayed MTFs. In addition, the pool will offer an internalised order type.

“We recognise customer demand for a non-displayed marketplace that is not limited to block or large-in-scale orders,” said Charlotte Crosswell, president of Nasdaq OMX Europe, in a statement. “We are responding by offering a dark pool for all order sizes and that can take advantage of existing order routing functionality.”

Other exchange groups have recently launched or are planning pan-European dark trading platforms. NYSE Euronext launched its SmartPool MTF in February, and the London Stock Exchange plans to launch its non-displayed trading platform, Baikal, in Q2 this year.

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