Nasdaq OMX Nordic, the operator of stock exchanges in Stockholm, Helsinki and Copenhagen, has announced a new onward routing service.
The new service will cover the most liquid Scandinavian shares and will enable the exchange's members to hunt for liquidity on five trading venues comprising: multilateral trading facilities (MTFs) BATS Europe; Chi-X Europe; Burgundy and Turquoise; and Oslo Børs, Norway's domestic exchange.
Nasdaq OMX Nordic has offered trading of Norwegian shares on its platform from March 2009.
Orders marked for routing will first look for liquidity on Nasdaq OMX Nordic before sending the order to the other markets if a better price is available. After routing, the residual portion of the order will be sent back to Nasdaq OMX. The router uses low-latency market data supplied by Thomson Reuters' Elektron trading and data distribution network.
The router is integrated with Nasdaq OMX Nordic's core matching engine in Stockholm and is available through members' existing connectivity. Further routing strategies will be launched later this year.
“The Nordic marketplace is second to none in its ability to meet the demands of market participants on execution quality, offering the best price 85-90% of time,” said Hans-Ole Jochumsen, president, Nasdaq OMX Nordic. “The order router is an easy to use service that helps our members to discover better prices for their customers as well as to strengthen their own business opportunities in an environment where technology and connectivity is key.”
The service is the first instance of a regulated market offering routing capabilities away from its own order book. Nasdaq OMX Europe, the MTF that Nasdaq OMX closed last July following an assessment of its business prospects, also offering onward routing capabilities to various European markets.