Nasdaq OMX Europe, a pan-European multilateral trading facility scheduled for launch on 26 September, plans to offer a routing strategy that will allow users to hit the platform’s order book and then post on the relevant market’s primary exchange.
This strategy will be offered in addition to the immediate-or-cancel (IOC) strategy that will allow orders to be executed on the platform or routed on to other markets Europe-wide if not filled.
“We certainly don’t believe we are going to be the dominant force on day one because there is a primary market out there,” Todd Golub, head of markets development at Nasdaq OMX Europe, told theTRADEnews.com. “We believe there is a value in giving customers the ability to execute on our book at a better price but knowing that they will also want the option of posting liquidity on the primary market.”
He adds, “It gives them the best of both worlds: the chance of executing on our book as well as access to the liquidity on the primary market.”
This new primary market routing strategy is likely to be rolled out on a country-by-country basis, and Golub expects the strategy to be available within a month of the new platform’s launch. The IOC orders and pan-European routing will be available from the launch date.
Nasdaq OMX Europe will have a staged launch similar to that of rival MTF Turquoise, which started operating last week. From 26 September it will start trading 25 constituents of the UK’s FTSE 100 index. From 3 October it will begin trading all components of the FTSE 100, FTSE 250 and iShares FTSE 100 ETF indices and start trading five stocks from each of the four Nordic markets. Trading in the Euronext markets of Belgium, Netherlands and France will begin on 10 October, Germany will be added on 17 October. The platform has not yet determined when it will start trading in Ireland, Switzerland, Spain and Italy.