|
Time | Trading phase |
09:00 – 10:00 | Pre-Open |
10:00 | Opening call (Uncross) |
10:00 – 15:55 | Continuous trading |
15:55 – 16:00 | Pre-Close |
16:00* | Closing call (Uncross) |
16:00 – 16:30 | Post-trade |
| 16:30 - 09:00 | Market closed |
* Randomized time between 15:59:30 and 16:00:00.
Order types
- Limit order - an order that stipulates maximum purchase price or minimum selling price.
- Market order - an order to sell or buy a stock at the current market price.
- Imbalance order - an order type that can be used in auctions. It accepts the equilibrium price reached and fills the theoretical imbalance between the surplus and the deficit side.
Order attributes
- Reserve orders (Iceberg orders) - a certain portion of the total volume of an order is not displayed in the Order Book.
- Pegged orders - these orders allow to price orders relative to the current market price for a security.
- Minimum quantity condition - orders can be entered for immediate execution with a minimum share quantity.
- Non-displayed orders - large in scale orders are hidden from other participants than the participant entering it.
Time in force
- Immediate or cancel (IOC)- if order is not matched immediately into trade(s) in full or in part upon entry, the remaining part of the order is cancelled.
- Good till Cancel (GTC) - an order is valid until it is cancelled.
- Day order (DAY) - an order is active for the trading day and any unexecuted portion will be cancelled immediately after the Closing call (Uncross).
- Good till Time (GTT) - an order is valid until a specified time of current day.
Orders matching priority
- Price - priority to order with better price.
- Displayed - priority to displayed part of order over non-displayed part of order.
- Time - priority to order entered earlier.
Counterparty disclosure
- Pre trade (orders) Anonymity normally applied.
- Post trade (trades) Transparency normally applied.
Most important changes in order types and functionalities of trading system
New order types and functionalities
Order types and functionalities mentioned below are available to retail investors if a bank has included them in its offer to clients.
| Description | Notes |
Pegged order | An order with a price tied to the current market price. Order can be pegged from either side or the mid-point of the Best Bid Offer. | Users can choose how closely they want to peg their order, e.g. 1 cent after the best bid or 10 cents below. Pegged orders have their price automatically adjusted by the trading system in response to changes in Best Bid Offer prices. For order to be pegged within the spread (to have better price priority to best Bid or Offer) the order must be above 50 000 EUR. Then it will become invisible (Non-displayed order)). |
Minimum quantity condition | An order specifying the minimum quantity of securities to be matched during continuous trading. | These orders are only accepted during continuous trading and only with a time in force “Immediate or cancel". If the minimum quantity is set to be equal to the entire quantity of the order, this creates a “Fill or Kill” order. |
Non-displayed orders | Non-displayed limit orders are hidden from other participants than the participant entering it. The order stipulates a maximum purchase price or minimum selling price.
| If not fully matched, it is logged in the Order Book in descending buy-price order or ascending sell-price order and joins the queue of orders having the same price according to time priority. Visibility is ranked ahead of time priority. The Non-displayed order will be absolutely invisible. To qualify for non-displayed the order must be at least 50 000 EUR (according to MiFID large in scale criteria). Do not mix Non-displayed orders with Reserve orders (Iceberg orders) where only a certain portion of the total volume of an order is not displayed in the Order Book. |
Good till cancelled (GTC) | An order validity condition for overnight orders. The order is not cancelled at the end of trading day but stored overnight and is entered into the Order Book prior to the start of trading on the next trading day by the trading system. No expiration date is specified, as such, with the exception of a corporate action that would entail all long orders being deleted; “Good till canceled” orders will persist in the Order Book “forever”. | Depending on each bank’s current and future policies clients may gain possibility to enter orders that are active over a very long time and do not need to be re-entered. |
Changed order types and functionalities
| SAXESS | INET |
Market order * | Market orders sweep through multiple price levels. The price is not determined as a condition of the order thus the order is executed at different price levels not only at the best price. | The matching logic of the Market order is that it will hit the opposite side of the Order Book and fill as much as possible at the best price level. Remaining volume will be cancelled, even though more volume is available at less favorable price levels. To sweep through multiple price levels, a Limit order (an order that stipulates a maximum purchase price or minimum selling price) can be used, where the limit price crosses the Best Bid Offer. |
Uncross point of time (Matching the orders after Opening and Closing Calls) | Uncross takes places for one Order Book at a time in certain sequence.
| Uncross takes place for all Order Books virtually at the same moment in time. However, the exact point in time when the uncross takes place in the Closing call (Uncross) is randomized within the last 30 seconds. |
* Note: Change in Market order may affect clients' trading commissions. Please consult your banks to find out whether they will offer this type of orders via internet banking.
Removed functionalities
Trading safeguards | The price deviation range +/- 15% of securities Reference price (usually last transaction's price concluded in the previous trading session) within one trading session also known as “trading safeguards” will be removed. So far it was impossible to enter orders in the Order Book indicating price outside the +/- 15% range of equities’ Reference price. Similarly to other NASDAQ OMX exchanges it will be possible to enter orders without these restrictions, though orders placed in the Order Book must reflect the current market value of securities. |
Trading rules after INET launch
Please find detailed information about trading on Baltic market under Rules and Regulations.
Market information now available on Baltic exchanges’ website will be also available after launching INET.
Data feeds will remain unchanged.
Questions and Answers
Will Baltic investors gain direct access to the US stocks through local members via INET trading system?
This depends individually on each member. INET trading platform in the Nordics and Baltics does not include US stocks. However it is the same trading platform used to trade US stocks, which means INET introduction will make access to US market technically more easy for members – the same trading platform and the same system interface. To gain direct access to NASDAQ Stock Market also legal, settlement and other requirements must be fulfilled.
Can investors and members from the US now trade in Baltic market?
We forecast increased trading activity in the longer run. To access the market directly investors need both technical access and to fulfill legal and other criteria. With the introduction of INET foreign investors will find lowered technical entry barriers, the same trading system, the same system interface, as well a market model and order types similar to trading on NASDAQ Stock Market. However Baltic membership is required in order to trade directly in Baltic equities.
Will all banks and brokerages that currently provide trading in Baltic securities will be able to provide securities trading also after INET launch?
INET launch has not caused any changes in Baltic exchange member list. Please see the list of Baltic exchange members – here.
Will commission fees for Baltic securities trading increase?
NASDAQ OMX Baltic exchanges will not increase commission fees for exchange members for Baltic securities trading. Regarding any changes in banks’ price lists for clients – please ask your broker.
Contacts
NASDAQ OMX Tallinn Market services +372 640 8800
NASDAQ OMX Riga Market services +371 67212431
NASDAQ OMX Vilnius Market services +370 5 2721448
Media contacts
NASDAQ OMX Tallinn
Tex Vertmann
+372 640 88 62
tex.vertmann@nasdaqomx.com
NASDAQ OMX Riga
Āris Dreimanis
+371 672 124 31
aris.dreimanis@nasdaqomx.com