Nasdaq OMX Nordic Boosts Trading Connectivity
Nasdaq OMX Nordic is broadening its Norwegian offering by allowing its members to trade all shares listed on Oslo Børs through the region’s primary exchange, Nasdaq OMX Stockholm, as the group looks to attract liquidity from larger western European venues.
The group’s Nordic business, which operates seven Nordic and Baltic exchanges, as well as a bourse in Armenia, will, subject to regulatory approval, from September introduce a new routing strategy on Nasdaq OMX Stockholm which will enable access to opening and closing auctions on Oslo Børs as well as facilitating the posting of orders on the Norwegian venue.
“As the leading operator of the market for equity trading in the Nordics, we want to offer trading on all Nordic shares,” said Bjørn Sibbern, senior vice-president, equities market, Nasdaq OMX Nordic.
“Now, our members can trade all shares listed on all Nordic exchanges through one access point. That makes it easier, cheaper and more efficient for them. The routing service helps our members to discover better prices as well as to strengthen their own business opportunities in a trading environment where technology and connectivity is key.”
In 2009, Nasdaq OMX Stockholm introduced trading of the most liquid Norwegian shares and the Swedish exchange gained about 10% market share of all shares listed on Oslo Børs.
“Hedge funds are becoming more attracted to what you would consider second tier markets, like Stockholm, and we are seeing liquidity moving off to these venues,” one London-based source told Markets Media.
Meanwhile, Nasdaq OMX Nordic has also announced an overhaul of its dark pool in a bid to discourage high-frequency traders away from the venue that allows the region’s institutional investors to execute large block trades anonymously.
Nordic@Mid was launched in November 2010 for non-displayed trading in Swedish, Finnish and Danish stocks but has struggled to gain serious traction.
The MiFID-compliant venue is now removing its minimum order size obligation of 500,000 Swedish krona ($70,000) and will also now give priority to the size, rather than the speed, of the trade.
The Nordic and Baltic exchanges had record IPOs and trading volumes.
It is important to maintain the voluntary nature of the standard.
Proposed changes would lead to an unsustainable level of additional cost and liability for issuers.
The regulator seeks input on the use of DLT for trading, settlement and regulatory reporting.
The strategic move taps into the existing geographic infrastructure within TP ICAP.