As communicated earlier in 47/17, following requests from market participants,
Nasdaq Nordic has decided to implement a set of enhancements to the current
Market Maker Order (MMO). Testing of the enhanced functionality will be
possible from September 25, 2017.
The MMO functionality is specifically designed to protect Market Makers (MM) in
Warrants and Certificates. Whenever a match is about to take place with a MMO,
matching is paused for 600 milliseconds (0.6 seconds), giving the MMs a
possibility to update the MMO before matching continues.
The MMO functionality will now be further enhanced in a way that the order book
will also be paused if the MM is not present on both sides of the order book
(two-sided spread), or in the case the spread is too wide as defined in the
INET Nordic Market Model. If the pause lasts for more than 10 minutes the order
book will move into an automatic trading halt, and later flushed and released
manually by Trading Surveillance.
During the pause, full order management applies, however matching will not take
The aim of the enhancements is to further improve the possibilities for
effective and safe Issuer Market Making, while ensuring that retail clients are
not executing at erroneous prices when the MM is not present in the order book.
There are no changes to protocol specifications. INET protocol specifications
are available at Nasdaq Nordic Technical Information web site.
ITCH and GCF-TIP include information on MMOs in the order book. If an order book
configured for MMOs is in continuous trading, without MMOs on both sides, the
order book will be paused, hence there is no explicit flag indicating a pause
Legal and Market ModelThe INET Nordic Market Model will be updated, effective as
of October 23, 2017 and changes will be available before the effective date.
The implementation of the changes is subject to discussions with regulators.
· INET Test (NTF), GCF TST4 - September 25, 2017
· INET MiFID II Test - September 25, 2017
· INET Production - October 23, 2017
Members can test out the new functionality in the INET Test (NTF)/GCF TST4 and
INET MiFID II Test environments.
Questions and feedback
For further information and feedback concerning this information, please contact
Anders Green, +46 8 405 67 52, email@example.com.
For technical questions, please contact Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410
Nasdaq Nordic represents the common offering by Nasdaq Copenhagen, Nasdaq
Helsinki, Nasdaq Iceland and Nasdaq Stockholm. Nasdaq Copenhagen, Nasdaq
Helsinki, Nasdaq Iceland and Nasdaq Stockholm are respectively brand names for
Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, Nasdaq Iceland hf. and Nasdaq